How not to get your insurance claim rejected

How not to get your insurance claim rejected. It is very common for people to buy insurance in Singapore especially in the recent years. This is because the level of financial literary has risen over the years in Singapore (Wealthdojo wants to be part of this movement). As more insurance are being bought, there are definitely more claims to be made (a simple law of large numbers). If everything is done well, how is it possible that your insurance claim is rejected? We hear many stories claiming that they are unable to claim from their insurance. These people are usually angry and when asked about the details of the claim, remain strangely silent on it. I feel that this has led to some distrust to insurance companies. These are some of the common comments I hear when it comes to claiming from insurance.

“I heard from my father’s friend that he couldn’t claim when he was hospitalised”

“My friend tried to claim from his plan. After buying, the consultant said he cannot claim from this plan”

Seeking to understand where they are coming from, I personally asked them about their situation. Finally, I realised that there are 3 secrets to not get your insurance claims rejected. (Secret #3 will blow your mind)  

3 Secrets to not get your insurance claims rejected

  I did a poll on instagram to see if there would be people out there will be interested in this topic (Screenshot below). They have this fear because of one reason and that is they have never claim before. They will not be sure if a particular situation is claimable or not. For experience financial consultants (Bespoke Financial Planner), we see claims regularly. On average, I do between 2 to 4 claims a week for my clients. Today, I want to share with you the 3 secrets to not get your insurance claims rejected.
How Not to get your insurance claim rejected
How Not to get your insurance claim rejected

Secret #1: Don’t listen to the plumper for investing advice

Each of us have different specialties. We hone our skills over time to be competent in that one thing. As a result, we get a salary from companies who pays us for providing services to their companies. This also explains why when there is a disruption in the economy, people who lose their jobs find it hard to find another job (think about the amount of taxi drivers who will lose their jobs if autonomous driving kicks in). The point I’m driving here is to get advice from those that are experts in it. Will you get advice on how to cook chicken rice from a vegetarian store owner? Will you get advice on which surgery to go for from a teacher? Then why will you get advice on insurance claims from a coffeeshop uncle or auntie? While a teacher may have some experience in surgery, a vegetarian store owner may had chicken before, the uncle may have some claims done before, they are not the experts in that particular craft. Seek advice about claims (especially if there is upcoming surgery) from a professional financial consultant (Feel free to contact us) who have done numerous claims to help you assess better.

Secret #2: Going for an annual financial review

How Not to get your insurance claim rejected financial review
How Not to get your insurance claim rejected: Financial review
After speaking to the father’s friend (as mentioned above), I realised that he has not met any financial consultant for the last 10 years (we will not be talked about why he refused to meet anyone in this article). Indeed, he was not able to claim a cent from hospitalization stay and that is because he didn’t had one. Yes. You read that correctly. He didn’t have one. Over the years, he had 10 accident plans bought over the phone from various banks. He was convinced he was insured adequately. Unfortunately, he wasn’t. Over the years, we may forget what plans we might have. The last time you saw your policy contract was probably the first time you bought the insurance. (Are you one of those who have not remove your policy from the envelope it was sent in? =p) Going for an annual financial review not only keep you reminded on your existing plans, it keeps you abreast on the latest changes that will affect you. (Read More: Life Insurers to change definition of Critical Illness)

Secret #3: Proper Disclosure

“Will XXX company find out if I have done regular breast check ups with a specialist?”

“I don’t want to get an exclusion. Can you help me answer “no” in the underwriting form?”

These questions sends shivers down my spine when a prospect look me into my eye and say it. Every year, numerous life and health insurance claims are rejected on various grounds with material non-disclosure of facts pertaining to an individual’s health being the key reason for claim rejection. One of the easiest way to get your claims rejected is to not state the truth in your underwriting.
How Not to get your insurance claim rejected disclosure
How Not to get your insurance claim rejected: Disclosure
Most people underestimate the insurer investigation capability during claims. The claim can be rejected if a “non-disclosure” or “misstatement” of fact is discovered. In simpler words, it means if you “did not state” a given fact or “provide inaccurate facts” that will affect the policy approval, the claims can be rejected. Financial Consultants is NOT HELPING YOU when he is helping you hide these facts. He/She just merely pushing the problem in the future when there is a claim.  

Conclusion: We all want a happy claim experience

We buy insurance to insure ourselves against unforeseen circumstances. In those time, we will need the money the most. We want the claims experience to be fast and smooth. Nevertheless, I will pray that your health is good and not use the insurance. In Wealthdojo, we strongly encourage you to talk to your Insurance Financial Planner once a year for a review so that your protection needs can be taken care of adequately. (Click here to contact us to help you with your Insurance Financial Planning). We believe in bespoke financial planning. Whether it is money maximization, insurance or investing, we believe that everyone is different and the planning should be suited for you. All opinions above are my own. Please view our disclaimer page to understand more. I hope to nurture genuine relationships with all of my readers. Please feel free to contact me on my Instagram (@chengkokoh) or Facebook Page! Now that you’ve read about learnt about how to benefit from What you can do about price hikes for public transport in Singapore. I challenge you to read this article (Careshield Life: Disability Insurance Singapore )to push your understanding further!

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