A bitter truth but getting over the loss of a loved one is tough. In cases where the departed has dependents, life insurance helps tide over the financial burden they may face. Therefore, it’s important to know how to claim the insurance benefits upon the death of a loved one. So, the benefit received through life insurance is certain, whether it is through maturity claim or death claim. Well 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.
Even f you are buying term insurance with return of premium (TROP) policy- a policy where instead of getting a lump sum 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. 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.
Through this article provided by MoneyMindz, Best On- call Financial Advisory Portal helps you remember if and when the time comes to make a claim.
Upon the death of the policyholder
During the policy’s term, if the policyholder dies, the nominee must get in touch with the company at the soonest. In such a case, the nominee should get hold of the ‘claim intimation’ form. One can either download the form from the company’s website or through a request for an email to the company’s call centre.
One can ask for documents that need to be submitted. 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.
It is always advisable o let your nominee know of the benefits and sensitise them about the claims process, should an event take place after you bought the policy if you have a life insurance policy. After the nominee is through with the process, the claim amount gets transferred in the nominee’s bank account. Therefore, the insurer is obligated to settle a claim within 30 days of receipt of all necessary documents.
What happens if you are alive?
Here you will find where the policyholder gets the benefits even if they are alive and the policy term ends. These are the products that bundle investment along with insurance.
After your insurance policy reaches its maturity date, the insurance company will send 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.
It is the duty of the policymaker to make sure the claims amount mentioned in the letter is correct, by verifying it against the policy document. Also the document will provide all the details like the maturity date of reimbursement and maturity amount payable.
Once 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 you send 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. Along all the things the policyholder also needs to provide the bank account details.
MoneyMindz believes a pure term policy always works out to be better than those that come bundled with investment.
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