A life insurance policy is a contract between a policyholder and a life insurance company. Life insurance provides financial security to you and your family. The life insurance company agrees to pay a lump sum amount in exchange for premiums for a specified period or after the death of the life insured.
It is suggested that a customer should buy a life insurance policy from a life insurance company that offers a smooth claim process with a high claim settlement ratio.
In this article, we will discuss the life insurance claim process and the documents required to file a claim.
A Nominee should check the below-mentioned factors before filing the claim:
- Check whether the life insurance policy is active or not.
- Inclusion and exclusion of the life insurance policy
- Always check the nominee's details are correct
- Read the policy document carefully.
Life Insurance Claim Process
Life insurance claims can be divided into three categories i.e. Maturity claims, Death claims, and Rider claims. Below we have mentioned all the claim processes in detail to give you a better understanding of the life insurance policy claim processes:
- Maturity Claim
Maturity claim is directly related to the maturity benefit of the policy. This means that when the policy term ends, the life insurance company has to pay the sum assured to the policyholder which is known as a maturity claim.
Under this claim process, the life insurance company pays a predetermined sum assured to the policyholder at the end of the policy term or maturity date. This amount includes the total sum insured along with incentives/bonuses.
For filing a maturity claim, the life insurance company sends the bank discharge form to the policyholder. The policyholder has to complete the form and send it to the bank along with all the required documents.
- Death Claim
A death claim is a request made by the nominee to the life insurance company. The nominee file a death claim in case of an assured death in between the policy tenure. The death benefit can be used by the nominee to ease the financial burden. For your better understanding, we have mentioned the death claim process in detail:
- Claim Intimation
The nominee must inform the insurance company in writing about the claim. The nominee can obtain the claim intimation form by visiting the nearest branch of the life insurance company or through the official website of the life insurance company. The nominee should enter the details like policy number, name, date of death, place of death, name of the claimant, etc in the claim information form.
- Document Submission
To file a death claim, it is necessary to submit the required documents properly. The life insurance company may ask for the following documents from the nominee:
- Death Certificate of the assured
- Birth Certificate of the Insured
- Policy Document (Original)
- Any other documents asked by the insurance company
- Claim Settlement
After receiving all the documents from the assured, the insurer needs to settle the claim within 30 days. In some cases, the life insurance company may need to do an investigation. In this case, the insurer must complete the whole procedure within six months of receiving the written claim notification.
- Rider Claim
Add-on riders can be defined as an additional benefit provided by the insurer by paying an additional premium along with the base plan. Various riders such as Accidental Rider, Critical Illness Rider, Hospital Cash Rider, Waiver of Premium Rider, etc. can be added to a life insurance policy. Different riders require different claim processes. Generally, you need to submit a duly filled claim form along with other required documents, and a copy of the policy document to file a rider claim.
Required Documents for Life Insurance Claim Process
Following are some of the documents that a life insurance company may ask you to submit for settlement of a life insurance claim:
- Duly and signed claim form
- Original policy document
- First Investigation Report (FIR), if required
- Post-mortem reports, if required
- Hospital discharge summary
- KYC documents of a beneficiary
- Xerox of Canceled cheque and bank statement
- Death certificate issued by the authority
Life insurance claims have been denied due to delay or lack of proper documentation on various occasions or inability to follow the correct claim process. Consequently, the claimant should be aware of the claim process so that there is a smooth claim settlement process while filing a death claim. When it comes to securing the future needs of the family, life insurance is one of the best options. It is suggested to read the policy terms and conditions carefully and submit all the required documents.
Disclaimer: The information published in this article is for the reader′s reference only. The content of this information is to provide an overview of your life insurance needs and should not be relied upon for personal, medical, legal, or financial decisions; you should consult an appropriate professional for specific advice. The Company makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or any other items mentioned on this subject for any purpose whatsoever.
*Standard Plans Terms and Conditions apply.