Insurance

Importance of disclosing correct information while buying life insurance

Providing the right details while buying life insurance can help you make the most of the plan.

Opting for a life insurance policy is probably one of the most important decisions in a person's life. However, if you do not maintain complete transparency with the insurance provider, your claim may be rejected at time of settlement. Hence, before buying a policy, it is important to disclose all the information honestly, as requested by the provider.

If you do not maintain complete transparency with the insurance provider, your claim may be rejected at the time of settlement.

Let us understand why providing right information to the insurance company is crucial.

Health/medical history

When disclosing details related to your medical condition or history, do not withhold any information. Disclosing the correct medical information helps the insurance provider to offer you the most appropriate life cover. Besides, it also eliminates any discrepancies during the claim settlement process due to incorrect or inadequate details.

Contact information

The life insurance provider will communicate important messages, changes in the policy or any new updates on the contact details mentioned in the application form.It is therefore crucial to provide correct and complete contact details to the company.While filling the form, ensure that your address, phone number and alternate contact number are correct.

Maintaining a good reputation

By providing misleading information to your insurance provider, you run the risk of damaging your reputation. This might reduce your chances of getting another insurance policy, as insurance companies now conduct elaborate background checks before offering any plan.

While filling up the life insurance application form, keep the following pointers in mind:

  • Fill out the form according to specific instructions given on the form
  • In case of any doubt, contact the company representative
  • Ensure that all the details provided are correct
  • Re-check the information you have filled out

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