Why You Should Give Correct Details for Buying Insurance Policy

January 22, 2022

Why You Should Give Correct Details for Buying Insurance Policy

Before you plan to buy any insurance policy, you must always provide accurate details as a piece of incorrect information would jeopardize your insurance claim processing and lead to financial loss. This blog will let you know why you should always give correct information to the insurance company.

Whether you buy an insurance policy that is general insurance or term insurance, you are expected to provide exact details. Giving accurate and honest information helps the insurance company to offer a policy as per your requirements. But there are times when you buy a life insurance policy; you may not disclose some of your health issues that could act as an obstacle when filing an insurance claim. It may get rejected because you have not disclosed the relevant & accurate information on your health to your insurance company.

Here we look at some of the aspects for which you need to provide honest details, and these include:

Educational Qualification:

Your educational qualification matters while you are applying for an insurance policy. Your education has an impact on your earning capacity. It is always necessary that you provide correct details of your education, and insurers always check whether your income corresponds with your education, years of service, job role, etc.

Income:

Your source of income is an essential factor too. Earning capacity and liabilities can affect your overall insurance cover. It is necessary that you provide exact details related to the number of years in the service, designation, etc. if you are working in a high-risk job category. Once these factors are evaluated by the insurer, there is less chance of over-insurance where insurance benefits exceed the actual loss of an insured.

Personal Health:

If you plan to buy health for yourself or your whole family, you may be required to undergo medical tests . Apart from this, you need to disclose the pre-existing diseases if any of your family members have them so that you get an adequate health cover. Insurers often take into consideration the smoker and non-smoker criteria. There is a slightly higher premium if you are a tobacco user as these substances have a direct impact on health.

Medical History:

When you are applying for a life and health insurance policy, your medical history is carefully scrutinized by the insurers. If the applicant has a medical history of illness, the premium may up go . Please check with the health insurance company as there may be a waiting period for certain pre-existing diseases . At the time of buying a health insurance plan if you are suffering from health ailments or you’ve had any sort of medical history such as diabetes, you have to declare this to your health insurance company. Bases your medical reports, health insurer either accepts the case by implying an additional premium or rejects the case depending upon medical adversity. Once your waiting period is covered for the declared diseases you can make claim under it.

Existing policies:

Life insurance covers are based on the human life value (HLV), which considers your income, expenditures and other liabilities to determine how much life cover should you purchase. If you already have a life insurance policy, you must disclose this information to the insurer..the life insurance company will offer the balance of the cover that is HLV sum assured of the existing cover.

So, whenever you are purchasing any insurance policy, make sure you do not misinterpret the facts to avoid rejection of claim settlement and financial loss.

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