To claim a Life Insurance Policy is an easy process to go through from the perspective of filing it with the insurance company. Though it can be a very emotional phase on a personal level, advanced laws and fear of public pressure means that major life insurance companies ensure to make the process smooth, and rarely deny a claim except for situations in which they are clearly in the legal right.
The idea of taking a life insurance policy is principally to provide financial security to your loved ones in case of an unexpected incident were to happen to you. Having a life insurance policy is like being safeguarded with financial stability for your family members when you cannot provide them anymore. This is especially relevant if you are the sole breadwinner of the family, in which case, there’s a high possibility of the family going into financial turmoil, given the lack of financial backup to sustain their needs.
Therefore, claiming your insurance money is an important aspect of life insurance. There are mainly two types of claims – one is one maturity of the policy, while the other is on demise of the policy holder. The claim on maturity is made by the policy holder, while the claim on death can be made by the nominee or dependents of the policy holder.
How to claim Life Insurance Policy money?
Getting in touch with the Appropriate parties
When you start the process of filing a life insurance claim, the best option is to get in touch with the agent who sold the policy that you have. If you are skeptical about the agent, you may get in touch with the insurance company directly that the policy is through. Once this process starts, the company will send you a claim form in the mail, and inform you about the additional requirements. You need to fill out the claim form without missing on any details or required fields. If you do not provide all of the information, your claim could get delayed.
Obtaining death certificate
If the life insurance policy was taken through your loved one’s employer, then the first thing you need to do is to contact the employer for further information on filing a claim. Irrespective of where the life insurance policy was obtained, you will need to get a copy of death certificate, and in case if you’re filing a claim on a spouse, you will need a marriage certificate. The claim intimation should have information like the cause of death, date and place.
Claim processing and settlement
After the Insurance Company’s claim assistance team has reviewed all the documents/evidence, they then make a decision whether to approve or deny the claim. If your claim is approved, the company proceeds to settle the claim which means that the sum insured will be rolled out to the nominee opted by the policy holder. For this, the beneficiary will have to submit their bank account details to the insurer, along with a cancelled cheque and account passbook.
It is important to note that every situation is different; it mainly depends on the type of life insurance plan, universal life, term, etc. the process to claim can differ accordingly.