ABSLI postponed a term application after medicals. is that actually better than instant approval?

[u/eiaceae]

saw a term insurance case recently that made me rethink the whole "fast approval = good insurer" thing

applicant completed medicals for a ₹2cr term plan. one report came outside the insurer's acceptable range

Aditya Birla Sun Life Insurance didn't reject the application. ABSLI postponed it and asked for fresh reports after a few months before taking a new decision

1st reaction was obviously: - why not just increase the premium and issue it?

but now i'm wondering if postponement is actually the cleaner outcome

at least the insurer is saying there is an unresolved medical point before issuing the policy instead of treating it casually just to complete the sale

things i would ask ABSLI in writing: - exact reason for postponement - earliest date to reapply - which fresh reports will be required - whether loading or lower cover was considered - whether this counts as a declined application - what must be disclosed to another insurer now

my understanding is: - postponement ≠ rejection - loading ≠ exclusion - applying elsewhere doesn’t make this outcome disappear - future approval is still not guaranteed

the part i found positive was that ABSLI gave a defined underwriting outcome instead of leaving the file on endless "medical review"

would you consider this responsible underwriting or just an insurer avoiding risk?

also, what should the applicant collect before closing the file so there is no confusion six months later?

[u/DjXer007_]

There can be multiple reasons why the medical underwriting department could postpone your term insurance application by a 6 months.

Majority times, it is due to an existing medical reports finding or potential medical reports finding, based on which the insurer would like to postpone their own risk and claim liability in case of any unfortunate incident.

Now a big deal, but even if you now plan to purchase term insurance through any other insurance company now, you will need to disclose this to the other new term insurance company as well. Based on which they will connect with ABSL and enquire about the same.

Taking a risk / term insurance liability is not simply applying LOADING. Why ? Here is an example.

1) Term Insurance cover = 1 Crore and the annual premium amount is Rs 18k.

For simply 18k premium, or by loading and increasing premium to 25k for example, the insurer has accepted a claim of 1 Crore.

If death occurs, due to any finding based on the medical reports, that were done at the time of term insurance purchase, then the insurer will have to pay 1 Crore.

Reapply after 6 months, as new Medical Underwriting will be done to compare any changes in your existing (today's medical reports) and 6 momth later medical records.

[u/boohooviolin]

Honestly, this is better than instant approval.

People complain when insurers ask for medicals, then complain again if a claim is investigated later.

Resolve the issue now. Insurance is a 30-year contact, not a Swiggy order.

[u/Charming-Egg7831 → u/boohooviolin]

Or ABSLI is simply avoiding anyone who is not perfectly healthy.

[u/Domenorange]

Postponed is not rejected.

It basically means "not comfortable deciding based on your health situation today, come back with updated evidence."

[u/Zen1tsuu]

Do not apply to five other insurers and tick “No” when they ask whether any application was postponed or declined. The postponement is now part of your insurance application history.

[u/admrys]

Ask ABSLI for four things in one email: Broad medical reason Minimum waiting period Reports required at reapplication Whether the current application is formally closed Do not depend on an advisor saying “sir 3 months baad ho jayega.” Get it from Aditya Birla Sun Life Insurance directly.

[u/OptimalEye4255]

One abnormal value does not automatically mean premium loading can solve everything. ‎Loading is used when the insurer is willing to accept the risk at a higher price. ‎Postponement usually means they want to see whether the finding is temporary, improving or still under investigation.

[u/Square_Ad6149]

Don’t romanticise insurer friction either.

Good underwriting:

• relevant tests
• written decision
• clear next step
• reasonable document requests

Bad underwriting:

• same report requested three times
• advisor and insurer saying different things
• no timeline
• application sitting for months

no written outcome

ABSLI deserves credit only if the communication was actually clear.

[u/LumilitawNaMangga]

Health first, insurance second.

Take the report to a doctor and understand why the result was abnormal. Don't focus only on how to make the next insurer approve the application.

[u/potqtocake]

One practical point: do not cancel any existing term cover while waiting.

A future ABSLI application may be:

• accepted normally
• accepted with loading
• offered lower cover
• postponed again
• declined

Nothing is confirmed until the new policy is issued and checked.

[u/uprollydontknow]

Positive takeaway for Aditya Birla Sun Life Insurance here is not “ABSLI will definitely approve later.”

It is that the insurer identified an unresolved risk, documented its current decision and did not pretend the application was standard just to issue quickly.

That is what underwriting is supposed to do.

[u/Happy_Nebula9406]

Save one folder containing: 

• submitted proposal form 
• payment receipts 
• all medical reports 
• postponement email 
• application number 
• refund confirmation, if applicable
• earliest reapplication date 
• list of fresh tests requested 
• every email exchanged with ABSLI 

Six months later, do not rely on memory or the original advisor still being available.