Rejection of Term Insurance Application

POSTED BY Pundarik Rajkhowa ON January 2, 2012 11:46 pm COMMENTS (2)

I am 30 years of age and work as an IT Officer in a PSU.I recently applied for term insurance in Kotak Preferred Term Plan for 20 years( as a cover for my home loan of same duration) , but my application was rejected basis my medical history I neither drink nor smoke. I am currently undergoing treatment for Ankylosing Spondylitis and mentioned the same in the application form. Can an insurance company reject application for such non life-threatening diseases ?

2 replies on this article “Rejection of Term Insurance Application”

  1. Manoj Asrani says:

    Dear Jago Investor Team,

    I too have had a similar experience with AEGON recently. Could you please guide me on the same?

    I am 29 years old, with a medical history of having done a Aortic Valve Replacement (Heart Surgery) operation in Feb 1998. I am leading a normal & healthy life, with no diet/life style restrictions since then.

    2 years back when I had applied for SBI Home Loan, SBI Life insurance cover on it was rejected because of my medical history (after undergoing required medical tests). They stated it as ‘risk’ covering me.
    Last month, I had applied for AEGON life insurance cover (50 lakhs until 75 years with 5K premium annually). They too rejected my proposal after the basic medical tests stating it as a ‘risk’.

    If any group considers it as a risk, they could have proposed some alternatives to me like – Higher premium, Reduced age of Cover, Reduced Insured Amount, etc instead of directly declining a cover for me.

    Having being rejected from SBI & AEGON, I dread to choose ICICI Prudential who do not have any medical test criteria.

    I am in a dilemma of these rejections and require a Financial cover for my family if I am not around. Could you kindly suggest me a way from your expertise?

    Manoj Asrani

  2. Dear Pundarik, In my view, first go with any other insurer of your choice & then only think of fighting your case. Without having a Term cover for yourself, what’s use of fighting with Kotak or any other insurer in case you are no more during this fight then who ‘ll pay that loan.

    Depending upon the underwriters of other insurers you may get this cover.



Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.