Neha Nagar Instagram – 3 crore insurance claim rejected, don’t make the same mistake.
Seema’s relative already had a life insurance policy. But they didn’t disclose this while applying for additional policies with other companies.
Here’s the key point: Insurance companies have a maximum coverage limit based on your Human Life Value (HLV). This value roughly reflects your financial worth and future earning wqewrbvdepotential.
A simple formula can help you estimate your HLV:
Maximum Coverage = Annual Income x 20
For example, if your annual income is ₹10 lakh, your ideal life insurance coverage shouldn’t exceed ₹2 crore (10 lakh x 20).
Why Does HLV Matter?
Insurance companies assess risk. By exceeding your HLV with multiple policies, over-insure yourself, raising red flags. In Seema’s case, the combined coverage from all policies (₹3 crore) surpassed the reasonable HLV based on their income, this
Follow These Tips to Avoid Claim Rejection:
Be Honest: Disclose all existing life insurance policies when applying for new ones.
Know Your HLV: Estimate your HLV using the formula above to determine appropriate coverage.
Focus on Needs, Not Greed: Don’t be tempted by excessive coverage. Aim for a policy that financially protects your loved ones based on your income.
Stay tuned for Part 2! Follow for more.
[ lifeinsurance humanlifevalue financialplanning claimrejection insurancetips ] | Posted on 23/Mar/2024 17:11:33
