Life Insurance Claim
Insurance policies have emerged as a necessity of life in the contemporary world. The future is an unexpected variable, and accidents and mishaps may occur at any point in time in people's lives. For common people, such unexpected incidents can often result in a major financial setback, which consequently leads them to dire economic straits that might take several years to mend. Hence, it is imperative that people invest in comprehensive life insurance policy scheme options, ensure the financial well-being of their family members in the scenario of any unfortunate incident, and reach their long-term financial goals.
A life insurance plan scheme is a contract between the insurance company and the policyholder. The insurance firm essentially promises to pay a certain pre-designated beneficiary a sum of money in exchange for a premium. The insurer pays this money upon the death of an insured person. Apart from death benefits meant to provide financial security to the deceased policyholder's family members, a life insurance claim may also involve maturity benefits.
Maturity benefit is the sum of money received by a policyholder or beneficiaries when a life insurance plan scheme matures. While maturity benefits are not provided under many traditional life insurance policy options, various contemporary risk management solutions cover such a payback.
People can easily compare policy options offered by diverse life insurance firms, and subsequently, invest in the one that they find perfectly suited to their requirements and financial objectives.
Factors to Consider before Making a Life Insurance Claim
Before a person opts to make a life insurance claim, there are certain elements about their policy scheme that they must take into consideration. Here are a few of those components:
Have all the premiums of the policy option being paid, and is the plan still active?
- Whether or not the relevant plan covers the current situation for which the life insurance claim process is being initiated
- What are the exclusions of the policy option
Filing a Life Insurance Death Claim
The major aspects of life insurance claim process in case of death claim include the following steps:
- Intimation to the insurance company about the life insurance claim
- Procurement of the documents needed for making the claim
- Submission of all the documents to the insurer
- Settlement of claim
The beneficiaries or the nominees of the life insurance policy scheme must inform the insurer about the policyholder's death as soon as possible to initiate the life insurance claim process. The insurer would require certain details for the claim intimation, such as the:
- The policy number
- Name of the insured
- Date of death
- Cause of death
- Place of death
- Name of the nominee
The claim intimation form can be downloaded from the official website of the insurer or can be obtained from the nearest branch of the company. Insurers may file their claim through PolicyBazaar.com as well.
While the exact documents required to make a life insurance claim for death benefits may differ from one insurer to another, the key documents that the nominees tend to be required to furnish for such cases include:
- Death Certificate
- Original Policy Bond
- Death Claim form that is provided by the insurance company
- An Accidental Death Benefit Claim Form that is filled up fully and accurately
- A medical report that indicates the cause of death
- A written statement that underlines the circumstances, location, and date of the accident
- Copy of the Police FIR
- Official documentation that proves the family status of the insured in case an accidental death claim is being made, then other important documents would be needed by the insurer. These documents include:
- Proof of identity of the beneficiaries and the proof of their relationship to the insured individual Step
To ensure a prompt life insurance claim settlement and processing, the beneficiary or the nominee should submit the complete documentation to the insurance firm as soon as possible.
After the submission of all the important documents, the insurance company shall process, verify, and evaluate them. According to regulation 8 coming under the IRDAI Regulations, 2002, the insurance company is obliged to settle the claim after 30 days of receiving all the documentation involved in the life insurance claim settlement process. In case the claim requires any further investigation, the insurance company would have to complete its procedure within 6 months from receiving the claim intimation in a written form.
Maturity and Survival Claims
In case the insured outlives the relevant life insurance policy scheme term, they would be eligible to claim the maturity benefits offered by the plan, if any. However, this would only happen if all the premiums of the policy option have been duly paid.
The life insurance claim process for maturity benefits is simple and hassle-free. It majorly involves the following elements:
- If the policy scheme is about to mature, the policyholder should intimate the insurance company. This should ideally be done at least a couple of months in advance
- The diverse details regarding the maturity amount, discharge voucher, and the maturity date would be provided to the insured
- Quite similar to a receipt, a discharge voucher needs to be signed by the relevant policyholder, while being in the presence of a witness
- This discharge voucher is sent back to the insurance company with the original policy bond, and the maturity benefit is provided to the policyholder based on this
- If the policyholder has nominated another person for the life insurance policy scheme, that nominee or beneficiary would have to sign the discharge voucher instead to receive the claim amount
- Maturity benefits are only provided for life insurance policy options that are eligible for survival benefits, additional bonuses, and similar compensations. In case the policyholder meets with an unfortunate date after the maturity date of the plan. Still, during the discharge process of the policy, then it shall be considered to be a maturity claim as well. The claim sum shall be paid to the nominees or beneficiary of the deceased policyholder in such a scenario
Multiple factors influence the premium amount of life insurance scheme plans, some of the major ones being:
- The key financial objective of the policyholder
- The type of policy scheme option they decide to invest in
- The overall coverage provided by the plan
- The age, gender, health, as well as, in certain cases, the occupation of the insured individual
- People can easily use an online comparison calculator for premiums to evaluate the sum of money they might have to pay as a premium for their desired insurance plan
The key types of life insurance scheme policies available are:
- Term Life Insurance
- Whole Life Policy
- Endowment Plans Unit Linked Insurance Plans (ULIPs)
- Money Back Policy
- Child Insurance Plans
- Annuity Plans
- People can make an online policy comparison for the diverse types of plans mentioned above, check out their distinct features and advantages, to identify the perfect type of a risk management solution to invest in as per their requirements
Ans: A life insurance policy scheme renewal can be done through the website of the relevant insurance company. Alternatively, people may opt to renew their plan through PolicyBazaar.com as well, in quite an easy and hassle-free fashion.
There are 3 types of beneficiaries involved in policy schemes for life insurance, who would be eligible to receive the death benefits:
- Preferred Beneficiary, which can include a child, parent, spouse or even a grandchild
- Primary Beneficiary, depending on the provisions of their plan, the policyholder can select a primary beneficiary
- Contingent Beneficiary, who is a person receiving the death benefit in case the primary beneficiary dies at the same time as the primary beneficiary or before them. However, in case there is no contingent beneficiary provided in the policy document, then the proceeds of the claim sum would be passed to the estate of the policyholder
Ans: Yes. You can invest in multiple life insurance scheme plans, provided that they belong to diverse insurance companies. In the case of a death claim, the nominee shall get the benefit from all the relevant insurance firms, depending on the policies they have invested in.
Written By: Paisawiki - Updated: 08 April 2021