What is Life Insurance? Term vs Whole Life – Which is Better?
Life insurance is a financial protection plan that helps secure your family’s future if something happens to you. In simple words, you pay a small premium regularly, and in return, the insurance company gives a large amount of money to your family after your death. This money helps them manage daily expenses, loans, children’s education, and other financial needs. Life insurance is not just an investment; it is a safety shield for your loved ones.
There are mainly two popular types of life insurance: Term Insurance and Whole Life Insurance.
Term Insurance is the simplest and cheapest type. You choose a specific time period, like 10, 20, or 30 years. If you die during this period, your family receives the sum assured. If you survive the term, you usually get nothing back. Because it only provides protection and no savings benefit, the premium is very low. For example, you can get ₹50 lakh or even ₹1 crore coverage at an affordable monthly cost. This makes term insurance ideal for middle-class families and salaried people.
On the other hand, Whole Life Insurance covers you for your entire life, often up to 99 or 100 years. It also includes a savings or investment component. You may receive maturity benefits, bonuses, or cash value. However, the premium is much higher compared to term insurance. Many people buy it for long-term wealth creation, but returns are usually lower than other investments like mutual funds.
So, which one is better?
If your goal is maximum protection at a low cost, Term Insurance is the best choice. It gives higher coverage and ensures your family’s financial security. But if you want lifetime coverage with savings, Whole Life Insurance might suit you.
Experts usually recommend buying Term Insurance first for protection and investing separately for wealth growth. Protection should always come before investment.
In the end, the right life insurance plan depends on your income, responsibilities, and financial goals. Choose wisely to protect your family’s future.
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Best Term Insurance Plans Under ₹500/Month – Affordable Protection for Your Family
Many people think life insurance is expensive, but the truth is you can get a large life cover at a very small cost. With term insurance, you can protect your family with coverage of ₹50 lakh to ₹1 crore for less than ₹500 per month. Yes, it’s possible! Term insurance is the most affordable and smartest way to secure your family’s financial future.
Term insurance is a pure protection plan. You pay a fixed premium every month or year, and if something happens to you during the policy term, your family receives a big lump sum amount. This money helps them manage household expenses, children’s education, rent, EMIs, and loans. Since there is no investment or maturity benefit, the premium stays very low.
If you are young and healthy, especially between 20 to 30 years old, you can easily buy ₹1 crore coverage for around ₹400–₹500 per month. The earlier you buy, the cheaper it becomes. Waiting increases your premium because age and health risks increase over time.
While choosing the best term insurance plan, look for these important features:
First, choose a high claim settlement ratio (above 95%) so your family gets money without problems. Second, check for affordable premiums that fit your budget. Third, see if the policy offers riders like accidental death benefit, critical illness cover, or disability protection. These add extra safety at a small extra cost. Also, compare plans online to find better deals.
Some well-known insurers in India offer budget-friendly term plans with good benefits and flexible payment options. You can easily compare and buy policies online within minutes.
So, which is better — saving money or protecting your family? Protection should always come first. Instead of investing in expensive policies, choose term insurance and invest the remaining money in mutual funds or SIPs for higher returns.
In short, term insurance under ₹500 per month gives you peace of mind and strong financial security. A small premium today can protect your family’s future tomorrow. Don’t delay — the best time to buy term insurance is now.
Top 7 Reasons Why Life Insurance Claims Get Rejected – Avoid These Mistakes
Buying life insurance is one of the best ways to protect your family’s future. But many people don’t know that claims can sometimes get rejected. Imagine paying premiums for years, and when your family needs the money, the company refuses the claim. This usually happens because of small mistakes made while buying the policy. The good news is that these mistakes can be easily avoided.
Here are the top 7 reasons why life insurance claims get rejected:
1. Hiding medical history
Many people hide diseases like diabetes, blood pressure, or heart problems to reduce premiums. This is the biggest mistake. Insurance companies verify medical records during claims. If they find false information, the claim is rejected.
2. Smoking or drinking habits not disclosed
If you smoke or drink and don’t mention it in the form, the insurer can deny the claim. Always be honest about your lifestyle habits.
3. Giving wrong personal information
Incorrect age, income, job details, or address can create issues. Even small errors may lead to rejection. Always double-check your form.
4. Policy lapse due to unpaid premiums
If you miss premium payments, your policy may become inactive. In this case, no claim will be paid. Set reminders or auto-pay to avoid missing payments.
5. Not mentioning risky jobs or hobbies
Jobs like mining, construction, or hobbies like trekking, racing, or skydiving are risky. If not disclosed, claims can be denied.
6. Nominee details not updated
If the nominee name is missing or incorrect, the claim process becomes complicated and delayed. Always update nominee details after marriage or family changes.
7. Fraud or suspicious death cases
If the insurer finds fraud, illegal activity, or suspicious circumstances, they may investigate and reject the claim.
So, how can you stay safe? The answer is simple — be honest and transparent. Fill the form yourself, disclose everything clearly, pay premiums on time, and keep documents safe.
Life insurance is meant to protect your family, but only if the policy is valid. A small mistake today can create big problems later. Always follow the rules and ensure your loved ones receive the benefits without stress.
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LIC vs Private Insurance – Which One is Safer & More Profitable?
When buying life insurance in India, most people get confused between LIC (Life Insurance Corporation) and private insurance companies. Many believe LIC is 100% safe because it is a government company, while others prefer private insurers for better service and lower premiums. So, which one should you choose? Let’s understand the difference in simple words.
LIC is India’s oldest and most trusted insurance company. It is owned by the government, so people feel their money is very safe. LIC has a strong reputation and millions of customers across the country. It offers traditional plans like endowment, money-back, and whole life policies. These plans provide both insurance and savings benefits. However, LIC premiums are usually higher, and the returns are often lower compared to other investment options. Also, the buying process can be offline and time-consuming.
On the other hand, private insurance companies like HDFC Life, ICICI Prudential, SBI Life, and Max Life offer modern and flexible plans. Their term insurance premiums are much cheaper, and you can get higher coverage at a lower cost. For example, ₹1 crore coverage may cost much less than LIC. Private insurers also provide better online services, faster claim processing, and extra features like riders for critical illness or accidental cover.
Many people worry about safety with private companies. But the truth is, all insurance companies in India are regulated by IRDAI (Insurance Regulatory and Development Authority of India). This means your money is protected under strict rules and regulations. So, both LIC and private insurers are safe if you choose a company with a high claim settlement ratio.
So, which one is better?
If you want trust and traditional savings plans, LIC can be a good option. But if you want higher coverage, lower premium, and modern features, private term insurance is usually the smarter choice.
Experts suggest buying a term plan from a private insurer for protection and investing separately for better returns.
In the end, the best policy is the one that gives maximum security to your family at an affordable cost. Compare plans carefully and choose wisely.
How Much Life Insurance Cover Do You Really Need? (Human Life Value Method Explained)
Buying life insurance is important, but many people make one big mistake — they either buy very low coverage or choose a random amount. Some people take ₹5 lakh or ₹10 lakh cover just because it is cheap. But is that enough for your family? The real question is not “How cheap is the premium?” but “How much money will my family need if I am not there?”
Life insurance should replace your income and support your family’s future expenses. This is where the Human Life Value (HLV) method helps. It is a simple way to calculate the right insurance cover based on your income, expenses, and responsibilities.
Let’s understand with an example.
Suppose you earn ₹5 lakh per year and your family depends on your income. If something happens to you, your family will lose this income every year. If we multiply ₹5 lakh by 20 years, your family will need at least ₹1 crore to survive comfortably. Add children’s education, marriage, home loan, or other expenses, and the amount may increase even more.
So, experts usually recommend:
👉 Life cover = 15 to 20 times your annual income
For example:
Income ₹3 lakh → Cover ₹45–60 lakh
Income ₹5 lakh → Cover ₹75 lakh–₹1 crore
Income ₹10 lakh → Cover ₹1.5–2 crore
This amount ensures your family can pay bills, loans, and maintain their lifestyle even after you.
Term insurance is the best option for high coverage because it offers large protection at a low premium. Instead of buying small traditional policies, choose a big term plan that truly protects your family.
Also, consider factors like:
Outstanding loans
Children’s future education
Daily living expenses
Inflation
Retirement needs of your spouse
Remember, life insurance is not for you — it is for your family. Buying less coverage can put them at risk.
In short, calculate your Human Life Value and choose adequate protection. A small premium today can secure your family’s tomorrow. Don’t guess — plan smartly and insure wisely.
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Top 10 Ways to Save Tax Under Section 80C (Latest Guide)
Paying tax is compulsory, but saving tax legally is smart. Many people lose thousands of rupees every year simply because they don’t know about Section 80C of the Income Tax Act. This section allows you to reduce your taxable income by up to ₹1.5 lakh per year. That means you can save up to ₹45,000 or more in taxes, depending on your tax slab.
Let’s look at the top 10 ways to save tax under Section 80C.
1. Life Insurance Premium
Premiums paid for life insurance policies for yourself, spouse, or children are eligible for deduction.
2. Public Provident Fund (PPF)
A safe government-backed scheme with good interest and tax-free returns. Ideal for long-term savings.
3. Employee Provident Fund (EPF)
If you are salaried, your EPF contribution automatically qualifies for 80C benefits.
4. ELSS Mutual Funds
Equity Linked Saving Schemes offer higher returns with only a 3-year lock-in period. Good for wealth creation.
5. Sukanya Samriddhi Yojana (SSY)
Best savings plan for a girl child with high interest and tax benefits.
6. National Savings Certificate (NSC)
Low-risk investment with fixed returns and tax deduction benefits.
7. Tax-Saving Fixed Deposits (FDs)
5-year lock-in FDs offered by banks also qualify for deduction.
8. Home Loan Principal Repayment
The principal amount of your home loan EMI is covered under 80C.
9. Children’s Tuition Fees
School or college tuition fees for up to two children can be claimed.
10. Senior Citizen Saving Scheme (SCSS)
A safe and attractive option for senior citizens with good returns and tax benefits.
You don’t need to invest in all options. Choose according to your goals. For safety, pick PPF or FD. For high returns, choose ELSS. For protection, buy life insurance.
The key is to plan early in the financial year, not at the last minute. Smart tax planning helps you save money and build wealth at the same time.
In short, Section 80C is your best friend for tax saving. Use it wisely and keep more of your hard-earned money.
Most people buy life insurance only for protection, but did you know it can also help you save tax every year? Yes, life insurance is not just about financial security for your family — it is also a smart tax-saving tool. By paying your insurance premium, you can reduce your taxable income and keep more money in your pocket.
Under Section 80C of the Income Tax Act, the premium you pay for life insurance qualifies for tax deduction. You can claim up to ₹1.5 lakh per year as a deduction. This means your taxable income reduces, and you pay less tax.
Let’s understand with a simple example.
Suppose your annual income is ₹8 lakh. If you invest ₹1.5 lakh in life insurance premium and other 80C options, your taxable income becomes ₹6.5 lakh. Now you will pay tax only on ₹6.5 lakh instead of ₹8 lakh. This can save you ₹20,000–₹45,000 or even more, depending on your tax slab.
You can claim deductions for:
Your own life insurance policy
Your spouse’s policy
Your children’s policy
Another benefit is under Section 10(10D). The money your family receives as a claim amount or maturity benefit is completely tax-free in most cases. This means both saving and returns are tax-efficient.
However, there are some conditions:
Premium should not exceed 10% of the sum assured
Policy should not be discontinued early
Always pay premiums on time
Term insurance is especially useful because it provides high coverage at a low premium while still offering tax benefits. You get double advantages — protection + tax saving.
But remember, don’t buy life insurance only to save tax. Protection should be your main goal. Tax saving should be a bonus benefit.
In short, life insurance helps you secure your family and reduce your tax burden at the same time. It’s a smart and responsible financial decision. So, plan early and make the most of your tax benefits.
Old vs New Tax Regime – Which One Should Salaried People Choose?
Every salaried person wants to save maximum tax. But since the government introduced the New Tax Regime, many people are confused about which option is better — Old or New. Choosing the wrong regime can make you pay more tax. So, let’s understand both in simple terms and find out which one suits you.
The Old Tax Regime allows you to claim many deductions and exemptions. You can save tax using benefits like Section 80C (₹1.5 lakh), 80D (health insurance), HRA, home loan interest, education loan, and more. If you invest and plan properly, you can reduce your taxable income significantly.
For example, if your salary is ₹8 lakh and you claim ₹2 lakh in deductions, your taxable income becomes ₹6 lakh. This means you pay less tax.
On the other hand, the New Tax Regime offers lower tax rates but removes most deductions and exemptions. The calculation is simple — no investments, no paperwork. You just pay tax based on income slabs. It’s easier but you lose tax-saving benefits like 80C, HRA, and home loan deductions.
So, which one is better?
Choose the Old Regime if:
You invest in PPF, ELSS, LIC, or EPF
You pay home loan EMI
You claim HRA or medical insurance
Your deductions are more than ₹1.5–₹2 lakh
Choose the New Regime if:
You don’t invest much
You want a simple process
Your salary is lower with fewer deductions
You prefer higher monthly take-home salary
For many salaried people who already invest and claim benefits, the Old Regime usually saves more tax. But for beginners or those who don’t invest, the New Regime may be better.
The smart way is to calculate tax under both regimes before filing returns and then choose the one with lower tax.
In short, there is no “one best option” for everyone. Your choice should depend on your income, investments, and financial goals. Compare carefully and pick wisely to save maximum tax.
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How to Pay ZERO Tax on ₹5 Lakh Income Legally
Many salaried people believe paying tax is compulsory even on small incomes. But the truth is, if your annual income is around ₹5 lakh, you can legally pay ZERO tax by using smart tax planning. Yes, it is completely possible and 100% legal under Indian tax rules.
Let’s understand how.
First, under the Old Tax Regime, you get a rebate under Section 87A. If your taxable income is up to ₹5 lakh, you get a full tax rebate of up to ₹12,500. This means your tax becomes zero. But the key word here is taxable income, not total income.
Taxable income is what remains after deductions.
Here’s how you can reduce it:
Start with Section 80C, where you can claim up to ₹1.5 lakh deduction by investing in options like:
Life Insurance premium
PPF
EPF
ELSS mutual funds
Tax-saving FD
Next, use Section 80D for health insurance premiums. You can claim ₹25,000 (or ₹50,000 for senior citizens).
If you have a home loan, you can claim interest deduction under Section 24(b) up to ₹2 lakh.
You can also claim HRA (House Rent Allowance), children’s tuition fees, and other exemptions.
Let’s see a simple example:
Suppose your salary is ₹6.5 lakh.
80C investment: ₹1.5 lakh
80D health insurance: ₹25,000
Total deductions = ₹1.75 lakh
Now your taxable income becomes ₹4.75 lakh. Since it is below ₹5 lakh, you pay zero tax after rebate.
In the New Tax Regime, income up to ₹7 lakh may also become tax-free due to rebate, but you don’t get deductions. So choose wisely.
The secret is simple — invest, claim deductions, and plan early instead of waiting until March.
In short, with proper planning, you can legally save all your tax and grow your wealth. Smart taxpayers don’t avoid tax — they plan it.
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ELSS vs PPF vs FD – Which is the Best Tax-Saving Investment?
When it comes to saving tax under Section 80C, three popular options most people consider are ELSS, PPF, and Tax-Saving Fixed Deposits (FDs). All three help you claim up to ₹1.5 lakh deduction and reduce your tax. But which one is actually the best? The answer depends on your goals, risk level, and time period.
Let’s understand each option in simple words.
ELSS (Equity Linked Saving Scheme) is a mutual fund that invests in the stock market. It has the shortest lock-in period of just 3 years, which is lower than other 80C options. Since it invests in equities, returns can be higher, around 10–15% or even more in the long term. However, returns are not guaranteed because the market goes up and down. ELSS is best for people who can take some risk and want higher growth.
PPF (Public Provident Fund) is a government-backed savings scheme. It is completely safe and offers fixed interest decided by the government. The lock-in period is 15 years, which is quite long, but returns are stable and tax-free. PPF is perfect for long-term goals like retirement or children’s future. If you want safety with steady growth, PPF is a great choice.
Tax-Saving Fixed Deposit (FD) is offered by banks with a 5-year lock-in period. It gives fixed and guaranteed returns, usually around 6–7%. It is safe and simple but returns are lower compared to ELSS and sometimes even lower than inflation. Also, interest earned is taxable, which reduces your overall profit.
So, which one should you choose?
Want high returns + short lock-in → ELSS
Want 100% safety + long-term savings → PPF
Want simple + guaranteed returns → FD
Many experts suggest a mix — invest some money in ELSS for growth and some in PPF for safety.
In short, there is no single “best” option. The best investment is the one that matches your risk level and financial goals. Choose smartly and make your tax saving work for you.
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Nominee vs Legal Heir – What’s the Difference? (Insurance & Property Explained)
Many people think that a nominee and a legal heir are the same. But this is not true. There is a big legal difference between the two. Not understanding this can create problems for your family during insurance claims or property distribution. So, let’s understand it in simple words.
A nominee is the person you appoint in your insurance policy, bank account, or investment to receive the money after your death. The nominee’s job is to collect the money from the company or bank. This makes the claim process fast and easy. For example, if you add your wife or father as a nominee in your life insurance policy, the insurer will directly pay the claim amount to them.
However, many people don’t know that a nominee is usually just a trustee or caretaker, not the final owner of the money.
The legal heir is the person who has the legal right to inherit your assets according to the law or your will. Legal heirs are decided by succession laws or a registered will. They can be your spouse, children, parents, or other family members.
Here’s the key difference:
Nominee → Receives money first
Legal Heir → Has final ownership rights
Let’s take an example. Suppose you name your brother as a nominee in your insurance policy, but your wife and children are your legal heirs. After your death, the insurance company will pay the money to your brother (nominee), but legally he must distribute it to your wife and children (legal heirs).
This is why simply adding a nominee is not enough. You should also make a clear will to avoid disputes in the family.
To stay safe:
Always add a nominee in all policies and accounts
Update nominee details regularly
Make a registered will for property and assets
In short, a nominee helps with smooth transfer, but legal heirs have the final right. Understanding this difference protects your family from future legal problems.
How to Make a Will (Step-by-Step Simple Guide)
Many people work hard their whole life to build savings, property, and assets. But very few people plan what will happen to their wealth after they are gone. Without a proper Will, your family may face legal problems, disputes, and delays in getting your money or property. That’s why making a Will is one of the most important financial decisions you can make.
A Will is a legal document where you clearly mention who will receive your assets after your death. It can include money, house, land, gold, bank accounts, insurance, and investments. A Will ensures your property goes to the right people according to your wishes.
The good news is — making a Will is simple. You don’t need to be rich or old to create one.
Here’s a step-by-step guide:
Step 1: List your assets
Write down all your properties, bank accounts, insurance policies, and investments.
Step 2: Decide beneficiaries
Choose who will receive each asset. This could be your spouse, children, parents, or anyone you trust.
Step 3: Choose an executor
Appoint a responsible person who will carry out your wishes and distribute assets properly.
Step 4: Write the Will clearly
You can write it on plain paper. Mention your name, age, address, and clearly state how assets should be divided. Avoid confusion or unclear language.
Step 5: Add witnesses
Get signatures from at least two witnesses. They should not be beneficiaries.
Step 6: Register the Will (optional but recommended)
Registering your Will at the sub-registrar office makes it more secure and legally strong.
Many people think nominees are enough, but nominees only receive money temporarily. A Will gives final ownership and avoids family disputes.
Also, update your Will whenever there is a big life change like marriage, children, or buying new property.
In short, a Will protects your family and ensures your hard-earned money goes to the right hands. Don’t delay — creating a Will today can save your family from stress tomorrow.
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How to File an Accident Insurance Claim – Legal Process Explained
Accidents can happen anytime and anywhere. They not only cause physical pain but also create financial stress due to hospital bills, loss of income, and other expenses. That’s why accident or personal accident insurance is very important. But many people don’t know how to file a claim properly. A small mistake or delay can lead to rejection. So, let’s understand the correct legal process step by step.
The first and most important step is to inform the insurance company immediately after the accident. Most insurers require you to report within 24–48 hours. You can call customer care or inform through their website or mobile app. Late information may create problems during claim approval.
Next, collect all necessary documents. These usually include:
Policy copy
ID proof
FIR or police report (for road or major accidents)
Hospital bills and medical reports
Doctor’s certificate
Discharge summary
Claim form
These documents prove that the accident actually happened and show the treatment costs.
After that, fill out the claim form carefully. Provide correct details about the date, time, place, and reason for the accident. Never give false or incomplete information, as it can lead to rejection.
There are two types of claims:
Cashless claim – If you are treated at a network hospital, the insurer pays the hospital directly.
Reimbursement claim – You pay first, then the insurer refunds the amount later.
Once you submit everything, the company verifies your case and processes the claim. If all documents are correct, the payment is usually made within a few days or weeks.
If your claim is unfairly rejected, you can:
Contact the insurer’s grievance department
File a complaint with IRDAI
Approach the Insurance Ombudsman
You have legal rights as a policyholder.
In short, quick reporting, proper documents, and honest information are the keys to a successful claim. Always read your policy terms carefully and keep copies of all records. Being prepared can save you time, money, and str
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Important Things to Check Before Signing Any Insurance Policy
Buying insurance is a smart decision, but many people make one common mistake — they sign the policy without reading the details. Later, during a claim, they realize that something is not covered. This leads to stress, delays, or even claim rejection. Remember, insurance is a legal contract, so you must understand everything before signing.
Here are some important things you should always check before buying any insurance policy.
1. Coverage amount (Sum Assured)
Make sure the coverage is enough for your family’s needs. Don’t choose a small amount just to save premium. Higher protection is always better.
2. Policy benefits and features
Understand what is covered and what is not. Read about death benefits, maturity benefits, bonuses, and additional features.
3. Exclusions
This is the most ignored section. Exclusions are situations where the company will NOT pay the claim. For example, certain diseases, waiting periods, or risky activities may not be covered. Always read this carefully.
4. Premium amount and payment term
Check if the premium fits your budget. Also see how long you need to pay — monthly, yearly, or for limited years.
5. Claim settlement ratio
Choose a company with a high claim settlement ratio (above 95%). This shows how reliable the insurer is in paying claims.
6. Riders and add-ons
Look for extra benefits like critical illness cover, accidental death benefit, or disability rider. These provide extra protection at a small cost.
7. Waiting period and lock-in
Some policies have waiting periods before benefits start. Know these conditions in advance.
8. Nominee details
Always add a nominee and update details correctly to avoid future legal issues.
Never depend only on an agent’s words. Read the policy document yourself and ask questions if anything is unclear.
In short, don’t rush while buying insurance. A few minutes of checking today can save your family from big problems tomorrow. Always read, compare, and then sign.
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What to Do If Your Insurance Claim Gets Rejected? Know Your Legal Rights
One of the biggest fears of insurance policyholders is that their claim might get rejected when their family needs money the most. While insurance companies are mostly reliable, sometimes claims are denied due to technical reasons, incomplete documents, or misunderstandings. But don’t panic — you have legal rights, and there’s a clear process to handle rejected claims.
Here’s what you should do if your insurance claim gets rejected:
1. Understand the reason for rejection
The insurer will give you a written reason for rejecting your claim. Carefully read it and check if it’s correct. Common reasons include incorrect information on the policy, missing documents, or policy lapse.
2. Review your policy documents
Go through your insurance policy to verify terms, coverage, and exclusions. Make sure the rejection aligns with the policy conditions. Sometimes companies reject claims for reasons that are not valid.
3. Contact the insurer’s grievance cell
Every insurance company has a grievance or complaint department. Submit a written complaint with all supporting documents. Keep copies of all communication. Most issues are resolved at this stage.
4. Approach the Insurance Ombudsman
If the insurer does not respond satisfactorily within 30 days, you can approach the Insurance Ombudsman. This is a government authority that handles insurance disputes free of cost. You can file a complaint online or offline.
5. Seek legal advice
If needed, consult a lawyer who specializes in insurance claims. They can guide you on your legal options and help you file a case in consumer court if necessary.
6. Keep records safely
Maintain copies of your policy, claim forms, receipts, emails, and any communication. These records are important for dispute resolution.
Important tips to avoid claim rejection in the future:
Always disclose accurate information when buying the policy
Pay premiums on time
Add correct nominee details
Keep documents like medical reports, FIRs, and bills safe
Remember, most claims are approved if you follow the rules. A rejection does not mean the end — it’s just a step to check compliance. Knowing your rights ensures your family receives the benefits they deserve.