How To Settle Claims For Life Insurance Plans?

Buying life insurance means providing financial security to your family and clearing off any debts/liabilities by helping your family needs when you are not around. Thus, one must buy a life insurance policy with a high claim settlement ratio as it not just ensures your family’s financial security but also saves them from the hassles faced at the time of filing a claim. Many of us are under the impression that settling down claims is the responsibility of the insurance company. But we should remember that policyholders also play an important role in simplifying the process.

Tips For A Smooth Claim Settlement

Thus, here are the few simple tips that can guide you towards smooth life insurance claim settlement –

• Intimate The Insurance Company On Time 

This is the first and foremost thing towards the claim settlement process. In case of death of the policyholder, the nominee or beneficiary should inform the insurance company about the incident on time in order to avoid any delays. All you need to do is to inform your insurance company either by call or e-mail.

• Keep All Your Documents Organized

Once you have informed the insurance company, the next step is to provide certain documents. Keep all your documents in place because if any document goes missing while filing a claim, then it may take time to initiate the process. It’s good to submit the documents beforehand, in case of a demise or maturity benefit.

• Provide Accurate Details

One must be accurate about all the details that you provide while filling an insurance form. Once you have filled in all the details, the next thing you need to do is to cross check them and make sure that there is no error or false information. Moreover, you should be honest about your past and existing health conditions. And if you have a habit of smoking and drinking then mention it too. A small mistake or anomalies can cause major issues during claim settlement. Therefore, you should clearly mention about your current health condition and smoking/drinking habits as many people assume that if they mention correct information regarding their lifestyle then their policy might get rejected. Although, that’s not the truth. You may have to pay higher premiums but your policy will get not rejected. One must never hide anything about their health and lifestyle as it’s better to pay higher premiums rather than getting your claim rejected after paying premiums for a longer time.

• Read Your Policy Documents Thoroughly

It is very important to read about your policy documents carefully as this will not just help you know about its inclusions and exclusions, but you will also get an idea about the do’s and don’ts while filing a claim.

• Understand The Claim Settlement Process 

As a policyholder, you must know everything about the claim settlement process right from documentation to other requirements associated with it.

• Update Your Policy From Time To Time

Always update your policy so that it includes all the latest information. Everything right from name, address to contact number and health condition should be updated in the policy in case of any change. And if there’s any change in beneficiary’s name or address, then also you must inform your insurance company as soon as possible. Also, you should keep proofs of the same.

• Educate The Nominee About Your Plan

Once you understand the policy and its claim settlement procedure, the next important thing you need to do is to make your nominee fully aware about the policy terms and conditions. He/she should know everything about the policy, right from the premium amount, policy details to the sum assured. Moreover, the nominee should also be aware of all the inclusions and exclusions that are mentioned under the policy.

Conclusion

On the whole, these are a few simple tips and tricks that everyone must follow for a quick and hassle-free claim settlement process. Before buying an insurance plan, one must look for an insurance company with a good claim settlement ratio.

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