Varieties of Term Life Insurance Claims You Ought to Be Aware Of
Filing and Settling a Term Insurance Claim: A Step-by-Step Guide
Navigating the term insurance claim process can be a challenging task, especially during a time of grief. Here's a comprehensive guide to help you navigate this process smoothly.
- Inform the Insurance Company: The first step is to notify the insurer about the policyholder's demise. This can be done by visiting the insurer's branch, calling their customer care helpline, or sending an email. Provide details such as the policy number, insured’s name, date and cause of death.
- Obtain a Certified Death Certificate: A certified copy of the death certificate is mandatory. You can secure this from the funeral director, hospital, or local health department. Insurance companies do not accept photocopies.
- Complete the Claim Form: Fill out the insurer’s claim form, which can often be downloaded online or obtained at their branch. The form requires information like the policy number, insured’s name, date and cause of death, and nominee’s contact and bank details.
- Submit the Claim Form and Required Documents: Send the completed claim form along with the death certificate and any other required documents (such as medical records or policy papers) to the insurance company.
- Verification Process: The insurance company reviews and verifies all documents. They may investigate the cause of death to ensure it is covered under the policy terms, especially in cases of accidental or suspicious deaths.
- Claim Approval and Settlement: Upon successful verification, the insurer approves the claim and disburses the death benefit. Payment can be made as a lump sum, installment, or other methods per the policy terms. Typically, claim settlement occurs within 30 days after all documents are submitted.
It's crucial to provide accurate information in the claim form to avoid potential rejections. Incomplete or fraudulent claims can lead to claim rejections.
Remember, only designated beneficiaries named in the policy can file for the claim and receive the settlement. The original insurance policy certificate is required for a term insurance claim.
The death benefit claim amount is the sum assured promised to the family or nominee in the event of the policyholder's death during the policy tenure. The amount claimed is called the sum assured and is mentioned in the policy document.
In case the policyholder did not disclose a pre-existing disease at the time of buying the term plan and this disease resulted in death, the claim can be rejected. Therefore, it's essential to disclose any pre-existing diseases to avoid claim rejection.
Lastly, the term insurance claim settlement process involves submitting all the documents listed by the insurance company. As per the IRDAI mandate, the insurance company has to settle claims within 30 days of the receipt of the documents, including all the clarification sought during the verification process.
By following these steps and being transparent with your insurer, you can ensure a smooth term insurance claim settlement process.
- According to the step-by-step guide, when filing a term insurance claim, it's advisable to discuss the financial matters with the insurance company to understand the claim process and the necessary documentation.
- Upon successful verification and approval of the term insurance claim, the insurance company will settle the claim, which can be in the form of a lump sum, installment, or other methods as stated in the policy terms, hence emphasizing the importance of understanding the finance aspects associated with the claim settlement.
