Reasons why Term Insurance Application is Rejected
Updated On: 08 Feb 2024
Inaccurate Information : Providing incorrect or incomplete information on your application is a red flag for insurers. Whether it's about your Medical History, Habits, Financials or Adventures make sure to double-check and provide accurate information to avoid any rejections.
Hiding Pre-existing Conditions & Habits : Failure to disclose pre-existing health conditions and Habits like Smoking or Drinking can lead to the rejection of your term insurance application.
Risky Occupations or Hobbies : If your profession or lifestyle involves hazardous activities or extreme sports, it might result in a rejection. Be upfront about it to ensure that the insurer can make an informed decision.
Stable Financials : Insurers assess your present Income to determine the Human Life Value and your ability to pay premiums throughout the Policy. Maintaining a stable financial track record can enhance your chances of higher Sum Assure approval.
Age and Health Condition : Applying at an older age or when dealing with health issues increases rejection. Consider applying for term insurance earlier in life to secure better rates and when in good health.
Medical Tests : Insurance companies require medical tests as part of their risk assessment and underwriting process. Failing to undergo all medical tests or manipulate the results can lead to application rejection.
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