how to claim term insurance after death,
By Okbima 07 Jun 2024

How To Claim Term Insurance After Death? Required Documents & Factors To Consider

 

How To Claim Term Insurance After Death: When a family member passes away, it can be difficult to file a claim for a term insurance policy. To successfully file a claim, you will need to provide the insurance company with a copy of the policy, the death certificate, and any other relevant documents. Let’s understand in detail the process of filing a claim.

 

How To Claim Term Insurance After Death?

To claim term insurance after the death of the insured in India, below we have mentioned easy steps to get a smooth claim.

  • Inform the Insurance Company: The nominees of the insured should inform the insurance company about the death of the insured as soon as possible by contacting the customer service helpline of the insurance company or visiting their nearest branch office.

  • Submit Required Documents: The insurance company will provide a list of documents that need to be submitted to process the claim such as the death certificate of the insured, policy documents, identity proof of the nominee & other relevant documents.

  • Fill Claim Form: The nominee will have to fill out a claim form provided by the insurance company. This form will need details about the policy, the insured, and the nominee.

  • Provide Proof of Identity and Relationship: The nominee will need to provide proof of identity and relationship to the insured, such as a marriage certificate or birth certificate, to process their claim.

  • Wait for Claim Processing: Once all the required documents are submitted, the insurance company will process the claim. This may take some time, depending on the complexity of the case and the company's procedures.

  • Receive Payout: Once the claim is approved, the insurance company will release the payout to the nominee. This amount will be the sum assured as per the policy terms.

 

Types Of Deaths Covered By Term Insurance Plans

There are some types of death that are covered by term insurance plans in which conditions you can file for a claim which are mentioned below.

  • Natural death: Death due to natural causes such as illness, old age, or disease.

  • Accidental death: Death caused by an accident, such as a road accident, drowning, or fall.

  • Disability due to accident or illness: Some term insurance plans also provide coverage for partial or total disability due to an accident or illness, which can cause loss of income or increased medical expenses.

  • Critical illness: Some term insurance plans offer coverage for critical illnesses such as cancer, heart attack, stroke, and organ failure, which cause death if not properly treated.

  • Terminal illness: Some term insurance plans also provide coverage for terminal illnesses, where the insured is diagnosed with a condition that is expected the cause of death within a certain time.

 

Factors To Consider Before Claiming Death Benefit

Here are some factors to consider before claiming a life insurance death benefit such as cause of death, nominee, etc.

  • Cause of death: Review the policy exclusions to ensure the cause of death is covered. Suicide within the first year of the policy, death due to hazardous activities, or death related to drug or alcohol use might be excluded.

  • Nominee: Double-check who is the nominee in the policy. You might need to contact the insurance company if you need to update the nominee information.

  • Immediate needs: Consider if there are immediate financial needs the death benefit can cover like funeral expenses or outstanding debts.

  • Collect documents: Collect the necessary documents like the death certificate, policy documents, and proof of nominee before contacting the insurance company.

  • Outstanding loans on the policy: If there were any loans taken against the policy, they might be deducted from the death benefit payout.

 

Conditions In Term Insurance For Claim Process

There are some conditions in term insurance for the claim process that you should know like validity of the policy, cause of death, waiting period, etc.

  • Submission of Required Documents: It is necessary to submit required documents such as the death certificate, policy documents, claim form, identity proof, etc. as required by the insurance company.

  • Timely Notification: The insurance company should be notified of the insured's death within a specified time which is usually within 30 days of the occurrence.

  • Validity of the Policy: The policy should be active and valid at the time of the insured's death for the claim to be processed.

  • Cause of Death: The cause of death should be mentioned in the death certificate and should be covered under the policy terms.

  • Nominee Details: The nominee should be mentioned in the policy and should be the one submitting the claim for the process to be smooth.

  • Investigation: The insurance company may investigate to verify the claim and ensure there is no fraud or misrepresentation.

  • Waiting Period: Some policies have a waiting period before the claim can be processed, usually within the first two years of policy issuance.

  • Settlement Time: The insurance company should settle the claim within a reasonable time frame after receiving all necessary documents and information.

 

How To Ensure Smooth Term Insurance Claim Process?

To ensure a smooth term insurance claim process, collect all necessary documentation and information, submit the claim & communicate effectively with the insurance company throughout the process.

  • Choose a reputable insurance company: Make sure to choose a well-known and trusted insurance provider with a strong track record of processing claims quickly and efficiently.

  • Understand the terms and conditions: Before purchasing a term insurance policy, carefully read the policy document to understand the claim process, requirements, and exclusions.

  • Provide accurate information: When applying for a term insurance policy, make sure to provide accurate and complete information about yourself and your medical history.

  • Regularly review and update your policy: Make sure to regularly review your policy and update any changes in your personal information or nominees to avoid complications during the claim process.

  • Keep important documents: Keep all necessary documents such as the policy document, death certificate, nominee's identification proof, and other relevant documents.

  • Inform the insurance company: In the unfortunate event of the policyholder's demise, the nominee should inform the insurance company as soon as possible to initiate the claim process.

  • Follow up on the claim: Stay in touch with the insurance company and follow up regularly to ensure a smooth and timely processing of the claim.

  • Get assistance if needed: If you need any help for a faster claim process, you can contact “Our Experts”.

 

Read More:

Life Insurance Tax Benefits In India: Eligibility Criteria & How To Save Tax?

What is Life Insurance Policy? Benefits & How Does it Work in India

Types of Life Insurance: Definition & Benefits in India 2024

Best Monthly Income Scheme in India 2024

Safe Investments with High Returns In India

 

Conclusion

In conclusion, claiming a term insurance policy after a family member's death can be emotional and challenging. To make the process smoother, inform the insurance company, submit all necessary documents, and follow up on the claim. Understanding the policy, choosing a reputable provider, and staying organized are key to a successful claim process. Get help when needed for a faster claim process.

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