What are some mistakes that could reduce my eligibility for ₹1 crore term cover?

It is generally simple to get a ₹1 crore term insurance plan approved if you provide detailed and honest information. However, there are several small errors people make that can hurt their eligibility or slow down the approval.

The good news is that most of these mistakes are easy to avoid once you know what to look for. Let’s look at some common errors people make when applying for a ₹1 crore term plan and how you can avoid them.

Contents

• Conclusion
• Frequently Asked Questions

The Importance of Being Honest About Your Health or Lifestyle Details

Many people do not want to be open about health conditions or disclose certain lifestyle habits, such as smoking or drinking, because they think it will cost them more in premiums or could even get them denied coverage. It’s a natural thought; no one wants to pay more for coverage. However, hiding this information can actually lead to being denied coverage.
Insurance companies appreciate honesty, and if you fully disclose any health conditions, for example, diabetes or hypertension, you may even qualify for the best plans available to meet your particular needs.

Giving Wrong or Incomplete Income Information

It’s a common concern, and many people ask: Do I need income proof for a ₹1 crore cover? Your income is one of the most critical factors in deciding your eligibility for a ₹1 crore term insurance plan for many reasons.

If your declared income doesn’t match your financial documents, the insurer may reduce your cover or reject the application. The best thing you can do here is to share accurate and up-to-date income proofs, such as salary slips, Form 16, or ITRs.

Delaying Medical Tests

The importance of taking medical tests is critical for both you and your insurer, for many reasons. Understand that medical tests are not just formalities; they help insurers understand your health before offering a large cover like ₹1 crore. So, skipping or delaying these tests can hold up your application or make approval harder.
It’s beneficial for you because it ensures that your premium is calculated based on your actual health condition, not assumptions.

Entering Incorrect Personal Details

Making mistakes while entering personal details might look small and not such a big deal, but even small errors in your name, address, or ID details can slow down verification. For example, if your PAN and Aadhaar don’t match, your application may get stuck. Before submitting your form, double-check your details and make sure your documents match exactly. This helps avoid unnecessary delays.

Applying for More Cover Than Your Income Supports

It’s natural to want higher coverage, but insurers usually approve amounts that are 10 to 20 times your annual income, depending on your age and dependents.
For instance:
If you earn ₹8 lakh per year, your eligible cover may range between ₹80 lakh and ₹1.6 crore.
If you earn ₹4 lakh per year, your ideal range may be between ₹40 lakh and ₹80 lakh.
Choosing a realistic cover helps you get faster approval and keeps your premium affordable.

Ignoring Previous Rejections

If your previous application was rejected, find out the reason first. It could be due to missing documents, an income mismatch, or a health concern. Apply when everything is in order.

Avoid These Mistakes When Choosing a Term Plan → 

Conclusion

A ₹1 crore term insurance plan can give your family strong financial protection, but it’s important to apply carefully. Most people lose eligibility not because they don’t qualify, but because of small, avoidable mistakes. Be honest in your form, complete your medical tests on time, and submit correct documents. When you apply with clarity and truth, getting approval for your ₹1 crore cover becomes quick and stress-free.

Frequently Asked Questions

Below are some of the frequently asked questions on mistakes that could reduce my eligibility for ₹1 crore term cover?

1. What are some mistakes that could reduce my eligibility for ₹1 crore cover?

Giving false information, skipping medical tests, or applying for a cover higher than your income supports can reduce your eligibility could reduce your eligibility.

2. What factors affect my eligibility for ₹1 crore term insurance?

Your income, age, health, lifestyle habits, and dependents all play a role in determining your eligibility for a 1 crore term plan.

3. Can hiding medical conditions reduce my eligibility?

Yes. Not disclosing conditions like diabetes or smoking habits can affect approval and cause claim issues later.

4. What is the ideal income for a ₹1 crore term plan?

Most insurers approve a ₹1 crore cover for those earning around ₹7–10 lakh per year, depending on expenses and dependents.

5. How can I increase my chances of getting ₹1 crore cover?

Be honest about your health and lifestyle habits, complete all necessary medical tests, and select a coverage amount that matches your income.

6. Can incorrect information cause rejection?

Yes. Errors in personal or income details can delay or even lead to rejection of your application.

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