Term Insurance Claim Settlement Options

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A life insurance policy is a need of the hour in today’s day and age. It provides financial coverage against unforeseen circumstances. By opting for such a policy, you gain peace of mind by knowing that you are financially secured at all times. A life insurance plan is, therefore, an important part of one’s financial planning.

Understanding term plans

Out of the types of life insurance policies available in the market, a term insurance plan is one of the most popular options. It is a pure protection plan that offers financial coverage in the unfortunate event of death during the term of the policy. The insured’s loved ones are then entitled to receive the death benefit amount, which may be used to meet their financial obligations. This may include meeting daily lifestyle expenses, repaying an existing loan, or paying for funeral expenses, among others.

Process of claiming a death benefit

Many individuals believe that the term insurance claim settlement process is lengthy and cumbersome. However, this is not true. Most insurance providers have simplified the process, thus making it easy for nominees to make a claim. This not only minimizes trouble for your loved ones but also ensures in settling the amount in the least possible time.

You may follow the below-mentioned systematic process for filing a claim.

1. Notify the insurance provider

The first and the most important step in making a term policy claim is by intimating the insurance provider about the death of the policyholder. Different insurance companies will have their own pre-set procedure for making a claim. Most insurers, however, require a claim intimation to be sent through e-mail as it acts as a proof in case of any issues during the claim.

2. Fill the claim form

The next step is filling the claim form. You may download the form from the insurer’s web portal or may visit your local branch and request for a physical copy. There are numerous types of forms, based on the nature of death. These include natural or accidental death claim forms, accidental disability claim forms, and critical illness claim forms, among others.

3. Submit the necessary documents

Based on the terms and conditions of the term plan, deaths may be classified into early and non-early deaths. The documents to be submitted vary according to the type of death. You may, therefore, check the comprehensive list of documents, which need to be submitted in either type of death.

In case of an early death, general documents to be submitted include hospital statement about the type of medical condition, certificate of cremation, and certificate from the employer. In an event of non-early death, documents to be submitted include death certificate from the Municipal Corporation, age proof, original policy documents, discharge papers attested by the claimant, identity proof of the claimant, and medical statements ascertaining the cause of death. In case of unnatural deaths, the claimant needs to submit the post-mortem report and the First Information Report (FIR) from the police.

Upon submission of all the required documents, the insurance company will verify the same. In case of any further requirements or clarifications, the insurance provider may contact the claimant. Once the documents are successfully verified, the insurance provider then settles the sum assured amount subject to other terms and conditions of the policy being fulfilled.

In the unfortunate event of death, the policyholder’s loved ones may, therefore, receive the sum assured amount without any constraints. They must, however, be made aware of the claim settlement process well in advance.

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