Personal Finance 5 instances under which your life insurance claim may be rejected Updated : October 31, 2020 11:09 AM IST Life insurance offers financial support to surviving dependents or other beneficiaries after the death of an insured. While it serves as the best possible tool for the coverage of loans and mortgages availed by the policyholder., there are certain incidents that may lead to rejection of life insurance claims. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.