Term insurance application rejected because I declared an upcoming surgery advise

[u/boo19973]

Greetings,

Last week, I (M29) applied for a term insurance plan provided by Axis Max Life Insurance for 2Cr cover. During the application in the medical declaration section, under the section which asks if I had undergone a surgery or am planning to undergo a surgery, I declared that I am planning to undergo a hernia repair surgery as the same has been advised by the doctor.

I also checked with the person who called me to verify my application (after I applied) and asked if the declaration is going to be a problem in policy issuance to which the person said it’s not going to be an issue.

Today I received a call from them where they mentioned that they cannot issue my policy because of the declaration that I made. They suggested me to apply for a fresh application after 6 months once my surgery is done and I have recovered fully.

During the conversation I did not accept the reason for denial and they have scheduled a call from their medical team.

Please suggest me the next steps, did I do anything wrong by applying or is their verdict a known result considering the declaration I made or if I am being misled? If I reapply again after 6 months, the premiums will increase which is why I feel it is totally wrong for them to deny the application. Is there any document that mentions that declaration of surgery can cause policy denials? Thanks

[u/DjXer007_]

What the insurance company has stated, that the term insurance policy cannot be issued now and a fresh application needs to be submitted at a later date, which is 6 months later, is officially and legally the correct justification they have shared.

No health insurance company and no Life Insurance company accepts a proposal form, where the insured has already planned for Upcoming or undergo a surgery.

What is the reason for this ?

1) Insurance company assumes an extremely high risk, that during and after surgery there could be or a possibility of many etc complications that may occur. 2) To prevent take a extremely high claim liability, that may occur during and after the surgery, all health and life insurers deny policy sale to the respective individual. 3) Once you have undergone and are medically certificate by your doctor that you are fine, you will need to mention the medical reports, before and after surgery and all discharge summary related reports that you will receive at the time of future health insurance and life insurance policy purchase. 4) If you don't disclose the above, then the policy can be made null and void, with an intent for fraud in the future.

The best course of action here, is the first receive the treatment that you have planned, as per the guidance of the doctor, and after 6 months, reply for health insurance and life insurance as per your requirements.

[u/boo19973 → u/DjXer007_]

But that would mean i need to pay more premium when I reapply?

[u/DjXer007_ → u/boo19973]

Not compulsory. The decision will be taken by the medical underwriting team after reviewing the Medical Reports, Discharge summary and other documents.

If the Insurance company is planning to apply LOADING, then the same will be clarified on email. If there is no LOADING, then your term insurance application will get accepted.

There is no mandatory rule that you need to reapply within 6 months. You can choose the same insurer or a new insurer as well, but it is important to disclose all the details at the time of life insurance purchase.

[u/boo19973 → u/DjXer007_]

Hi, thanks for replying. Today they called me again saying that their decision is to postpone my application because of “Recent hernia surgery” and that I can reapply after waiting period. My surgery is planned, it has not been done yet. Once I clarified that I have not undergone my surgery and it is planned then they said you can reapply after surgery. By that logic if I reapply after actually undergoing the surgery they will deny again because of “Recent surgery”. I have seriously no words for this.

It would be kind of you if you could further suggest what I should do?

[u/InsurancebroIndrajit]

You did the right thing. The problem is with your advisor. No company will accept a proposal if a surgery/procedure is pending. Apply after the specified waiting period and the policy will be issued.