Archive · 1 Dec 2025

30% of Term Life Insurance Applications Rejected in India

30% of Term Life Insurance Applications Rejected in India

In India, 30% of term life insurance applications are rejected.

This happens during the underwriting process, where the insurance company checks the application.

The main reasons for rejection are medical conditions like high blood pressure or diabetes, which cause 46% of rejections.

Financial eligibility is the second biggest reason, with 32% of applications rejected due to issues like income proofs.

Other reasons include high-risk jobs (6%), legal issues like pending criminal cases (4%), incorrect or missing documents (4%), lifestyle habits (4%), and where the applicant lives (4%).

To avoid rejection, it's important to have good health, proper financial records, and complete documentation.

Sources