Life insurance Policy
is all about serving its purpose when you need it the most – when the event for which life insurance was taken, has come to pass. Your insurance cover is only as good as the way in which life insurance Claim
is honored by the Insurer
in the event of death. Hence, it is as important to check about the processing of life insurance claim in the event of death, as it is to go for the right kind of life insurance policy. And there are a few steps that need to be taken care of when claiming the Maturity
amount in the event of death.
•Check before you claim on insurance policy
: When you make your claim on your insurance policy in the event of death, you need to ensure that you have the relevant pieces of information and that they are accurate. Check if the insurance policy was in force by the time the death happened. The status of the life insurance policy
should be intact, with all payments having been made up-to-date.
•Get your documents together
: In the event of death, ensure that there is a valid certificate of death, age proof of the insured, the original policy document, and any other document as may be specified or requested by the insurer.
•If the Insured
had been ill and been admitted to a hospital, you would need further documents to support claim on the life insurance policy. Some of the documents required could be proof of and statement from the hospital regarding the illness for which the patient had been admitted, death certificate from the hospital, as well as cremation certificate or burial certificate from the cemetery or crematorium.
•Other special case documents
: Life insurance requires documents in the form of proofs for Accident
if death had been because of accident. In case of an air crash, you would need a statement from the airline to prove that the insured was a passenger in the aircraft involved in the accident. In case of death from other causes such as death by murder, suicide, or other causes that cannot be determined, settlement of the maturity amount would depend on the provision of other documents such as police certificates or medical reports such as post mortem certificates.
: The insurer is required by law to complete all formalities and settle the claim involving the maturity amount within 30 days of submission of all documents relevant to the insurance policy. In some cases, settlement of claims on life insurance may not be that easy and further investigations may be required. In such cases, the law requires the insurer to complete the processes within a period of 180 days from the date on which the intimation of the claim was received in writing.
•After the successful submission of claims on life insurance, calculations such as Bonus
payments as well as verification of the nominees are done by the insurer. Loan amounts pending on the life insurance policy, if any, are deducted, and the final settlement is made to the nominee’s bank account.
It is important to follow the steps religiously and follow the directions of the insurer, such as submission of further documents and completion of formalities in time, so that the maturity amount is dispersed, and claim on life insurance is honored.