LIC Tips: Before investing money in LIC, you are not making these 4 mistakes..

Investment in LIC is considered safe, but some common mistakes can put your policy claim at risk. Many times, people hide important information related to health or lifestyle, due to the claim being rejected later. In such a situation, it is very important to give correct information and understand the rules.

LIC is the best for investment

People often consider Life Insurance Corporation (LIC) to be good for future security. But claims related to LIC policies are often rejected due to small mistakes, due to which the policyholder or their family has to face big trouble. So let us know today what things should be kept in mind while taking an LIC policy.

Why are policy claims rejected?

First, we will understand why the last policy claim gets rejected. Actually, the insurance business works on the principle of "complete honesty". This means that while taking out the policy, the customer has to give all the correct and complete information to the company. If there is any mistake in this, then the claim may be rejected later.

1. Giving incorrect or incomplete information
Actually, it is very important to provide complete information regarding your health while applying for health insurance. If you hide any of your old diseases, like diabetes or high BP, then the company can check the medical records at the time of claim, and your claim can be rejected if wrong information is found. Along with this, hiding habits like smoking or drinking alcohol is also harmful. Due to this, there can be difficulty in the claim process, and payment can be refused.

2. Not keeping the policy active
If you do not pay the premium of your insurance policy on time and the policy lapses, then there is no possibility of getting any claim during that time. However, insurance companies often allow reviving the policy within a stipulated time, so by paying the premium and interest during this period, you can reactivate your policy, so that you can get the benefit of a claim in the future.

3. Mistake in nominee information
It often happens that if the nominee's name, address, or other information is wrong in the policy, then there is a problem in getting the claim. So, if the nominee's name is not written at all, then the legal process for the claim becomes even more difficult.

4. Lack or mistake in documents
It is very important to provide correct and complete information about documents while claiming SIC insurance. Such as a death certificate, policy bond, all medical records related to the hospital, and accurate information of the bank account have to be submitted. If any of these documents is incomplete or wrong, then the insurance company can stop or delay the claim process.

How can this be avoided?
To avoid rejection of the policy claim, it is most important that you remain completely honest and transparent while taking the insurance. That is, it is very important to keep some important things in mind to get the benefits related to the insurance policy. First of all, fill in all the information related to your health, income, and lifestyle correctly in the application form. Read and understand the terms and conditions of the policy carefully. Also, pay the premium on time, and if you miss it, take advantage of the grace period. Keep the name of the nominee correct and updated, so that there is no problem in the claim. Also, keep all the documents in a safe place and inform the family about it.

Supreme Court side

Let us tell you that the Supreme Court had given an important decision in favor of LIC in March 2025, in which transparency related to insurance claims was emphasized. The court had also said that Jeevan Arogya Yojana is a cash benefit policy, so if the disease is caused by alcohol, then its claim cannot be considered payable.

What should you do?

So if your claim is rejected, then there is still no need to panic. Yes, you can contact the company's grievance redressal department or file a complaint with the Insurance Ombudsman. (Note: The news is based on general information)

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.