Please fill the form to compare quotes from various insurance companies
Several cases have come into the light when the Policyholder goes missing for years. Furthermore, the family is unaware about his life insurance Policy and insurance amount goes unclaimed. And even if the Dependants are aware, they do not know what to do with it that is whether they should continue the insurance policy by paying regular premiums or they should stop paying the premiums.
This kind of naïve situation will not only let Claim amount of Survival Benefit go in vain but will also Lapse the policy without being the Death Benefit realized if it is applicable. Therefore, the first thing every policyholder should do is to converse with his dependants and the nominee regarding the types and benefits of policies purchased by him as an insured.
When the person is missing and search for him is going on, the earliest step is to inform the police as well as the respective insurance company in written. And, if it is the time to pay the insurance Premium it should be promptly paid so that the insurance policy does not get lapsed. The reason being, if the policy get lapsed, most of the benefits cannot be availed. Moreover, the Insurer may ask to pay for the penalty to bring the policy in momentum.
Unfortunately, when the missing person is not found, he is assumed to be dead. If seven years have passed and still there is no trace of the missing person, the matter can be taken to the court for the presumption of death. Till that moment, the life insurance policy of the missing policyholder should be kept active by regular payment of the premium as well as by fulfilling all other formalities.
The day on which the court orders the presumption of death of the missing policyholder is assumed to be the date of his death. Beneficiaries can now inform the insurance company regarding the court’s order and on the basis of this date they can raise survival benefit or Maturity benefit if it had fallen due in the period of those seven years when policyholder was missing. And, if no survival benefit or maturity benefit was due, beneficiaries can raise the death claim.
Life insurance policy is purchased basically to take care of the dependents when the Insured life is no more. Procuring the insurance policy and keeping it uninformed to family members or beneficiaries is of no use. So that all the efforts and premiums do not go in vain and people for whom the life insurance policy is purchased are able to make use of it, it is necessary that the policyholder let somebody know in the family regarding the insurance policy and the insurance cover. This would bring the sense of security in the family and if unfortunate situation arises, family members are always there to help him to raise the claim and if policyholder is not around the dependents can at least make use of the amount of death claim.