With the onset of Internet , now you can Apply Insurance online or can buy through agents/brokers. In the current state of time when most policies are bought through agents the importance of filling up your own Insurance application is important.

What the Insurance taker doesn’t realise is that such a easy approach can make a crucial difference in ensuring that claims are not prejudiced. Unlike other transactions, insurance is based on faith. Since the insurance company cannot verify every bit of information, it accepts in good faith whatever details the proposer provides. The risky side is that this gives the company the right to reject claims if there is non-disclosure of a fact that is material to the pricing of premium and can happen when you have not filled in your own form.

Taking a little more trouble in filling the proposal form can, however, help the insured save premium money as there are some disclosures that make a difference in price:

Age proof

One should give legimitate Age proof when filling up the application as it helps in claim process ,cause in this wasy rejection of claim is really difficult.

Income

Indians often fight shy of disclosing their full income. But there is a legitimate reason for an insurance company to seek the proposers’ income, particularly if the proposer is seeking a high sum insured. Insurance companies usually accept the sum insured as a multiple of present income. Under-declaring income could result in the company declining the proposal for a high sum insured.

Occupation

It’s best if the occupation is not left vague. For instance, when you mention your occupation as ‘engineer’ with ABC Construction, the underwriter wants to know if you are a design engineer or a site engineer or an IT engineer maintaining the company’s systems. Do mention if you toil in an environment with high safety norms. This reduces premium hike on the grounds of “occupational extra.”

Medical history

Here again, most applicants are reluctant to share information, and agents misguide proposers by asking them not to declare some medical procedures.

The information, however, need not increase your premium. If a claim has arisen out of any pre-existing condition not disclosed in the proposal form, the insurer has a ground not to pay it.

Family history

Being clear on this front works in your favour if the family is seen enjoying higher life expectancy with good health. It makes a stronger case for cover at a higher age.

Other details

List all the life insurance policies you have. Give details of the cover you enjoy under those policies along with the policy numbers, name of the insurer, sum assured and the date on which the policy started. If you have bought a policy from the same insurer at a standard rate in the recent past, you may get a favourable underwriting treatment.

A lethargic attitude here can deprive you of better underwriting treatment. Mention the reasons behind the purchase of life insurance. If you don’t have any insurance and are going in for a large sum assured due to a fresh home loan, mention it. Employment, wedding and child birth and are some valid grounds.

If the proposer does not mention the surgery details in the proposal form and this is detected subsequently, the underwriter will turn cautious about the life to be insured. Even if an additional test is called for, you stand to benefit from it, as you come to know about hidden problems, if any.