Things You Should Know Before Filing A Death Claim

When a loved one dies, especially if he or she was the family's sole earner of income, financial instability and distress ensue. In such a case, a term insurance policy purchased at the appropriate time will relieve the family's financial burden to a large amount. In order to save the family, the designated insurance nominee will have to complete the appropriate steps to obtain the death benefit while dealing with emotional issues. Let us first understand death claims before moving on to the steps that must be followed when making a life insurance claim following the insured's death.

What are Death Claims?

The nominee is entitled to the predefined sum assured if the policyholder dies within the term plan duration, that is, before the policy maturity date. The nominee must file a death claim with the insurance provider, together with proof of death and other required documents, in order to receive the money insured.

Things You Must Know Before Filing A Death Claim

Here are some important things to remember when filing a death claim.

• Nature of Life Assured’s Death

  Before filing a death claim, one must be informed of the many processes and paperwork that must be submitted. The insurance company considers two categories of deaths: early and non-early deaths. Early death occurs when the insured person dies within three years of the term plan's expiration date, while a non-early death occurs when the covered person dies after the term plan's expiration date. The list of documents needed to file a death claim based on term insurance differs depending on the insurer.
  

• Inform the Insurer About the Death

  The procedure of settling a claim begins with notifying the company of the insured person's death. The nominee must give information such as the time, date, and cause of death at the time of claim notification. When notifying the claim, the policy details must be stated. If you have any questions about the procedure, call the insurer's customer care department and file a claim.
  
  

• Submit Relevant Documents 

  For the submission of claim documentation, a deadline will be established. Depending on the insurance, several types of documentation may be requested. In most circumstances, though, it is likely to be very conventional. Before processing a claim request, the insurer may require the following documents: a properly completed claim form, policy details, death certificate, bills, medical reports, diagnosis, FIR copy (for accidental death), post mortem report (for accidental death), legal evidence of next of kin relationship (if the nominee is not declared), and any other documents that the insurer may request.

The insurance company will notify you if any more supporting documents are required based on the claim process. If all of the prerequisites are met, the insurance company will proceed with the claim settlement. The payment will be made to the recipient's bank account. To get payment on time, make sure you enter the right account information.

Endnotes 

Most of the leading insurance firms in the market have an easy claim settlement process. However, the company's and IRDA's specific rules must be adhered to at all times. The claim documents must be complete and exact, and they must be filed by the specified timeframe. The insured's family can readily acquire access to the settlement cash by following the insurer's guidelines.

Also read: Documents Required Life Insurance Claims

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.