How Does Nominee(s) Ensure That Death Benefits Are Credited to Their Accounts?

There are times when the insurer is reluctant to pay such a huge cover. While claiming the maturity benefits, the insurance company generally shies away from paying such a huge amount of sum assured (Rs 50 lakhs to Rs 1 crore) and comes up with a weak excuse to avert paying the same.

To ensure credibility of the death benefits as determined while preparing the term proposal, it is important that you furnish the correct details while buying term insurance. Details of lifestyle habits and nagging diseases must be disclosed lest the insurer attributes your early death to those reasons and withholds the payment during the claim. Apart, the Insurance Regulatory Development Authority of India (IRDAI) has made it compulsory for every insurance company to carry out a detailed background check of the policyholder within the first two years of issuing the policy. On discovery about any lifestyle habit or medical condition that was not disclosed while buying the policy, the insurer reserves the right to raise the premium amount or discontinue the policy or reject the claim altogether.