What to check in a life insurance proposal form?

When you buy a car or a house, you read every line of the contract. But when people buy life insurance, a product worth crores, they often casually sign where the agent points their finger.

This is a dangerous habit.

In the insurance world, the "Proposal Form" is the single most important document you will ever create. It is your sworn statement to the insurance company. If you pass away, the claims team will pull out this exact form and compare it against the reality of your life. If they find a discrepancy (e.g., you said you were a non-smoker, but medical records show otherwise), your policy could become worthless paper.

Here is your comprehensive checklist of what to verify before you click "Submit" or sign the dotted line.

The short answer: Treat it like a legal affidavit, not a signup form

The life insurance proposal form is not just "paperwork"; it is the legal foundation of your contract. If the information in this form is incorrect, whether by accident or intentional omission, the insurance company has the legal right to reject your family's claim later. Before you sign, you must personally verify three critical areas: Medical History (disclose every surgery/illness), Lifestyle Habits (smoking/drinking), and Existing Insurance details. Do not let an agent fill this form without your strict supervision.

1. The "Medical History" Section (The Danger Zone)
This is the number one reason for claim rejections in India. Many people fear that if they mention a past surgery or a minor condition, their policy will be rejected. So, they tick "No" to everything.

The Reality:

• Most minor conditions (like a kidney stone 5 years ago or mild asthma) will NOT get your policy rejected. They might just increase your premium slightly.
• However, hiding them is considered "non-disclosure of material facts."

What to check:

• Surgeries: Have you listed every surgery you’ve had in the last 5-10 years? (Even a C-section or appendix removal).
• Chronic Conditions: Diabetes, Hypertension (BP), Thyroid. If you take a pill for it, you must declare it.
• Family History: If the form asks about hereditary diseases (like if your parents had heart issues or cancer), answer truthfully. This helps the insurer price your risk accurately. Rule of Thumb: If you are unsure whether to mention a doctor's visit, mention it. It is better to have a policy with a slightly higher premium than a policy that pays nothing.
  
  

2. Lifestyle Habits (The "Smoker" Test)
Insurance companies differentiate sharply between smokers and non-smokers. A non-smoker pays significantly less.

• The Trap: You smoke occasionally (socially) but tick "Non-Smoker" to get the cheaper rate.
• The Consequence: Nicotine traces remain in your body/medical records. If you die of a respiratory or heart issue and the investigation reveals a history of smoking, the claim will be denied for fraud.

What to check:

• Tobacco: Cigarettes, gutka, vapes, nicotine patches.
• Alcohol: Frequency and quantity.
• Occupation: If you work in a hazardous environment (mining, chemical factory, high-altitude), declare it.
  
  

3. Existing Insurance Details
The form will ask: "Do you hold any other life insurance policies?"

You must list all of them, including that old policy your dad bought for you ten years ago.

Why it matters:

Insurers calculate your Human Life Value (HLV), the maximum cover you are allowed to have based on your income.

• If your income justifies a ₹2 Crore cover, and you already have ₹1.5 Crore from another company, you are only eligible for ₹50 Lakhs more.
• If you hide the existing ₹1.5 Crore policy to get another ₹2 Crore, you are "over-insuring" yourself. This is a major red flag for fraud.
  
  

4. The "Nominee" Details (The Payout Destination)
Imagine your family struggling to claim the money because you spelled your wife's name wrong.

What to check:

• Spelling: Does the nominee’s name match their Pan Card/Aadhar Card exactly? (e.g., "Sushmita A. Sharma" vs "Sushmita Sharma").
• Relationship: Is the relationship clearly defined? (Spouse, Son, Father).
• Allocation %: If you have multiple nominees (e.g., Wife and Mother), check the percentage split (50%-50% or 70%-30%).
  
  

5. Contact Information

• Email ID: Ensure your personal email ID is used, not the agent's or your office email. All renewal notices and policy updates will go here.
• Address: Ensure the address matches your current KYC proof.

The "Agent" Warning

In many cases, a helpful agent will say, "Sir/Ma'am, don't worry, just sign the last page. I will fill in the rest at the office to save your time."

NEVER DO THIS.

The agent’s goal is to sell the policy. They might inadvertently (or intentionally) tick "No" on medical questions to ensure the policy gets issued quickly without medical tests.

• The Victim: You. When the claim is rejected 10 years later, the agent will not be there to take the blame. You are responsible for every word in that form.
• The Fix: Sit with the agent and watch them fill it, or ask for a draft copy before final submission.

The "Free Look" Period: Your Safety Net

Even after you sign and receive the policy, you have a second chance.

Every life insurance policy comes with a Free Look Period (usually 15 days for offline, 30 days for online policies).

When the policy document arrives:

1. Open the photocopy of the Proposal Form attached to the policy bond.
   
2. Read it again.
   
3. If you find an error (e.g., the agent marked you as a non-smoker by mistake), contact ABSLI immediately to correct it.
   
4. If the insurer refuses to correct it, you can return the policy and get a refund.

Summary Checklist: Before you Sign

Final Thoughts

Filling out a proposal form is tedious. It asks uncomfortable questions about your health and mortality. But that 20 minutes of honest, detailed work is what gives your family a guaranteed^# payout when they need it.

At ABSLI, we encourage you to be "boringly honest." Tell us everything. We would rather ask you for an extra medical test today than ask your family difficult questions tomorrow.