Getting over the loss of a loved one is tough. But in cases where the departed has dependents, life insurance helps tide over the financial burden they may face. Hence, it’s important to know how to claim the insurance benefits upon the death of a loved one.
The benefit received through life insurance is certain, whether it is through maturity claim or death claim. A maturity claim is one where the policyholder gets money back at the end of the life insurance policy- typically an endowment policy, money-back policy, a unit-linked insurance policy, even in case of no death.
In fact, even if you are buying term insurance with return of premium (TROP) policy- a policy where instead of getting a lumpsum back, you get premium payments at regular intervals like some sort of a regular income- you receive all your premium payments once the policy term ends.
On the other hand, a death claim is an amount that goes to your loved ones—those who you’ve nominated in your policy—after your death during the policy term.
Here’s what you need to remember if and when the time comes to make a claim.
Upon the death of the policyholder
If the policyholder dies during the policy’s term, the nominee must get in touch with the company at the soonest. The nominee should get hold of the ‘claim intimation’ form. The form can either be downloaded from the company's website or through a request for an email to the company's call centre.
Ask for documents that need to be submitted. Typically, the death certificate of the deceased, policy document (it’s always a good idea to have a copy of the insurance policy, where you are the nominee, while your loved one is alive) and the nominee’s bank account details are required.
If you have a life insurance policy, it’s always advisable to let your nominee know of the benefits and sensitise them about the claims process, should an event take place after you bought the policy.
Once the nominee is through with the process, the claim amount gets transferred in the nominee’s bank account. The insurer is obligated to settle a claim within 30 days of receipt of all necessary documents.
What happens if you are alive?
Here’s where the policyholder get the benefits even if they are alive and the policy term ends. These are products that bundle investment along with insurance.
When your life insurance policy reaches its maturity date, the insurance company will send an intimation through email, text message, or send a letter to the policyholder along with some insurance claim form (also known as discharge voucher) at least two to three months in advance of the date of maturity.
The policyholder has to make sure the claims amount mentioned in the letter is correct, by verifying it against the policy document. The document will provide all the details like the maturity date of reimbursement and maturity amount payable.
After assessing the details, the policyholder has to sign the insurance claim form (discharge voucher) and send it back to the insurance company via post or if the policy was bought online, in such case, an online claim has to be submitted by visiting the insurer’s website.
While sending your policy document through courier the original policy copy also needs to be sent to ensure there is no discrepancy and the payment is made on time.
The policyholder also needs to provide the bank account details.
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