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How to claim term sum assured after policy holder’s death?

A death claim is the nominee's formal request to the insurance company. IndiaFirst Life provides a step-by-step guide on how to claim term insurance sum assured after policy holder’s death.

Author:IndiaFirst Life | Date:20 Jun 2022 | Time:08:16:00

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How to claim term sum assured after policy holder’s death?

INTRODUCTION 

This thread will answer all of your queries about how to claim the term insurance benefit after death. The approach is extremely simple and the entire process is clearly outlined below.  As a nominee, all you have to do now is to take a step ahead to fully comprehend the procedure for claiming term insurance benefit after death. 

LEARN HOW TO CLAIM TERM INSURANCE AFTER DEATH BY FOLLOWING THE BELOW STEPS

Herein as a nominee, you will find a simple approach for claiming the sum assured of the term insurance policyholder.   

STEP 1 - NOTIFY THE INSURANCE COMPANY ABOUT THE CLAIM

The first stipulation is that the term life insurance provider be notified of the policyholder's death so that you can process the life insurance claim.  Keep all of the policyholder's Term Life Insurance information. After filling out the necessary information, either pick up a claim form from the insurer's nearest branch or download a claim form from the insurer's website. 

STEP 2 - KEEP DOCUMENTS HANDY TO ENSURE THAT THE CLAIM IS FILED

To file a life insurance claim smoothly, make sure you have your term life insurance documents ready. The insurer, in addition to the original policy documents, requires the policyholder's death certificate. The undermentioned documents are required to be submitted to make a term insurance claim : 

DOCUMENTS REQUIRED TO FILE CLAIM SUBMISSION

  1. A duly filled claim intimation form 

  1. All original term policy documents       

  1. The original and attested copy of the policyholder's death certificate. 

  1. All medical records 

  1. Bank account details of Nominee 

  1. Any assignments or reassignments 

  1. Nominee documents like photo ID proof and Address proof 

STEP 3 - THE INSURANCE COMPANY EVALUATES THE CLAIM

The reason for the policyholder’s death is usually investigated by the insurer if the claim is filed within 3 years from the date of the issuance of the policy.  If the policyholder dies as a result of a serious illness or natural death, the hospital is required by the Term Plan to provide the insurer with the policyholder's medical information. If the death was not caused by natural causes, such as suicide or murder, the FIR as well as a post-mortem report of the policyholder must be submitted to the insurer. 

STEP 4 - CLAIM SETTLEMENT

According to the Insurance Regulatory and Development Authority of India (IRDAI)'s guidelines, all insurers must pay death claims within 30 calendar days for life cover. The date on which the nominee of the policyholder files all the prescribed and required papers and explanations to the insurer shall be recognized as the commencing date of the filed claim.  

In certain cases, an additional investigation can be conducted by the insurer depending upon the case as required. Additional investigation is usually completed within 60 to 90 days of receiving notification of a claim. If the insurer fails to settle the claim within 30 days, the insurer must pay penal interest in accordance with IRDAI guidelines. 

IMPORTANT FACTORS TO CONSIDER BEFORE FILING A TERM INSURANCE CLAIM

The sum assured and the interest rate are important to be studied with keeping all the aspects in mind before filing the claim.  Make sure you know and understand the below-mentioned factors for your claim.  

  1. Make sure that the circumstances under which the policyholder died are covered under the policy's terms and conditions.  

  1. You must ensure that the information on your claim form and in the term policy documentation is matching.  

  1. Before filing the claim, ensure that the reason for the policyholder's death was not covered by the term policy. Exclusions include death from a pre-existing disease, death from alcohol or drug addiction, and other risky behaviors. 

  1. The life cover covers both natural and unnatural causes of death. The insurance sector relies heavily on risk assessment. The death benefit is set as per the policyholder's risk level.  

Checking the policy document is the best way to find out about specific exclusions and inclusions for the policyholder's life cover. The nominee could potentially get the information by contacting the insurer's customer service department. The nominee can file a claim for the funds once he or she has the appropriate paperwork. 

APPLYING FOR A CLAIM IN A SMART WAY

Online term plans make it simple to monitor your health insurance and file a claim in just a few minutes. You must follow particular procedures to ensure that your claim is authorized. 

  1. If you are the policyholder, educating your family and yourself about the claims process is important. Unfortunately, you won't be there when the term life insurance claim is filed.  

  1. All information concerning the policy should be shared with your nominees. This includes details about the policy, including the claim process, sum assured terms and conditions, and any other information.  

  1. It is also important to mention any add-on riders with the nominee and educate them about the same. The last thing you would want is for your family denied any benefits because they didn't know they existed in the first place. 

CONCLUSION

Make sure you understand how to submit the claim form. Prior to the claim settlement process, the nominee can get advice from an insurance agent on insurance plans, financial planning, income tax savings, how to obtain death benefits, and the premium payment of the life insurance claim from the term insurance company. 

Filing a life insurance claim from the life insurance company after the death of the policyholder requires the nominee to be fully informed about the process, as incorrectly filled applications or missing any steps may result in claim rejection.  

IndiaFirst Life Online Term Plan is a term insurance plan which can be directly purchased online. This term plan is aimed at helping you ensure your financial security for an affordable price in the face of an unforeseen event. Our affordably-priced term insurance plans can be tailored to suit your specific requirements. The online term insurance policy will provide you and your family with financial support in the face of unfortunate events. 

BY

IndiaFirst Life

Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a paid-up share capital of INR 663 crore, is one of the country's youngest life insurance companies. Our key differentiators are our simple, easy-to-understand products that are fairly-priced and efficiently serviced. We offer a diversified suite of over 46 need-based products & Riders (as of 31st March 2022) catering to varied customer segments, leveraging multiple distribution capabilities and augmenting various investment options. In all, propositions under the categories of Protection, Assured Savings, Wealth, Pension, Health and Group Funds for Employee Liabilities form a complete suite of offerings that help our customers prepare for the certainties of life. Our products are easy to understand and competitively priced with risk management bein.

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