How To File A Claim For Term Insurance?

How to File for a Term Insurance Claim?
Conclusion

A term life insurance policy is imperative for a financially stable future, and the benefits of a term policy can be even more rewarding when purchased at a young age as the premiums are significantly cheaper. To find the best term life insurance, it is important to analyse your financial needs before choosing a term plan. Unfortunately, while Indians encourage saving, the term insurance meaning and its role in a financially stable future are not instilled among the young.

It is important to understand the exact term insurance meaning to buy the best term insurance policy. In its simplest form, a term life insurance policy provides coverage for a pre-specified time. If the policyholder were to pass away while the term policy is active, the nominee receives a death benefit.

How to File for a Term Insurance Claim?

A term insurance claim is a request filed by the beneficiary to avail of the death benefit if the insurer passes away while the term policy was still active. Most insurance companies have a hassle-free claim settlement process. The usual process of claim settlement is:

Claim Intimation

To initiate the claim settlement process, the beneficiary must inform the insurance company as soon as possible. To ease out the process, keep certain personal information handy. This includes the policyholder’s name, date of birth, policy number, cause and place of death, etc. The claim form for the settlement either can be downloaded from the insurance company’s website, or the nominee can get it from the nearest branch office.

Documents to Keep Available

The beneficiary will require the following documents for claim settlement:

Age proof of the policyholder
Policyholder’s death certificate
Original term policy documents
Other specific documents that the insurance company might require
If the claim settlement is done within three years of policy initiation, the insurance company investigates to ensure that the claim is genuine by:
Checking with the hospital to ensure that the deceased individual was admitted.
Asking the hospital to provide the doctor’s certificate, medical records, etc., if the policyholder passes away owing to a critical illness.
For death due to a flight crash, the insurance company confirms with the airline whether the policyholder was a passenger in the flight.

Must read: 5 Key Reasons Your Term Insurance Claim May Get Rejected

Documents for Claim Settlement

Apart from the documents mentioned above, the beneficiary should submit the following documents as soon as possible:

Claim form
Original death certificate with an attested copy issued by the local municipal authority
Original policy documents
Beneficiary’s passport size photograph
Beneficiary’s identity proof such as passport, PAN card
Deeds of assignment or reassignment, if any
Post-mortem report if any
Medical records
Last medical attendant certificate by the physician

Settlement of Claim

If there is a delay in filing the claim or putting the right documents together, then the claim settlement date could stretch. However, from start to finish, the life insurance company should pay out a death claim within 60 days. It is usually highly uncommon for reputed companies to not pay within 30 days of the policyholder’s death.

Important Inclusions and Exclusions

The insurance cover applies to both natural and unnatural death. If the cause of death is a suicide, the claim is settled after one year of the policy initiation. The exclusion and inclusion of the policy rely on the risk factor of the insured individual, meaning the benefit offered to a smoker differs from that of a non-smoker.

Conclusion

A term insurance plan is provided based on your age, medical history, lifestyle habits, income and occupation. If any of the information is declared falsely, incomplete or undisclosed, the insurance company may reject the claim and suspend policy benefits.