Documents Required for Term Insurance

Significance of Documents for Term Insurance Claims

Despite the national disruption caused by the COVID-19 pandemic, the insurance sector has seen significant positive momentum. Notably, term life insurance has gained significant traction among the general public. Such policies provide comprehensive financial security to policyholders' families in the event of their untimely death. It is critical to become acquainted with the necessary documentation for initiating a death claim, as well as to comprehend the complexities of the claim settlement process, to ensure the rightful entitlements of the beneficiaries.

When compared to previous protocols, the procedure for settling death claims has been streamlined, resulting in a significant reduction in time consumption. Most insurance companies allow you to file claims directly through their online platforms, eliminating the need for physical branch visits. Required documentation, such as evidence substantiating the insured party’s death, proof of the claimant’s relationship with the deceased, and pertinent banking information, should be compiled and uploaded. This involves submitting scanned copies through the insurer’s dedicated portal for term insurance claim submission.

Documents Required for a Term Insurance Claim

It is necessary to provide a death claim intimation that includes essential particulars such as the cause, date, and location of death in order to expedite the claim settlement process. To ensure a smooth process, keep documentation substantiating these aspects easily accessible. The following section provides a comprehensive list of documents required for submitting a death claim for the deceased policyholder’s term insurance coverage.

For Deaths Occurring More Than Three Years After Policy Inception

• Original policy documents.
• Original or attested copy of the death certificate issued by the local municipal authority.
• Death claim application form (Form A).
• NEFT mandate form attested by bank authorities, along with a cancelled cheque or bank account passbook.
• Nominee photo identity proof (e.g., copy of passport, PAN card, voter identity card, Aadhaar card).

In Case of Death Due to Medical Illness

In addition to the above-mentioned documents, you will be required to submit the following:

• Attending physician statements/certificates.
• Proof of treatment in hospital.
• Funeral/Burial certificate.

In Case of Accidental/Unnatural Death

If the policyholder dies as a result of an accident or other unnatural circumstances, claimants must provide the following documents in addition to those listed above:

• Original FIR copy.
• Original Police Inquest Report.
• Post-mortem report.

Importance of Documents When Filing a Claim

These documents are critical to ensuring a smooth claim settlement process. Insurers thoroughly verify all submissions before proceeding with the claim. If the insurer discovers any fabricated information, the entire benefit amount will be cancelled. Documents required for a death claim also play a crucial role in separating legitimate claims from fraudulent ones. These records prove useful during the insurer’s inquiry.

Here is a list of documents that are required:

Documents Required to Buy a Term Insurance Plan

Here are the documents needed to purchase a term plan for an individual: photograph, address proof, date of birth proof, and income proof. Refer to this list of term insurance documents for a smooth application process.

Officially Valid Documents (OVD)

• Passport
• Voter ID Card
• Job Card issued by NREGA
• Aadhaar Card
• Any other document issued by the Central Government

Additional Officially Valid Documents Required

• PAN Card / Form 60

Any of the below proofs will be allowed with the submission of approved OVDs by customers within 3 months:

• Utility bills (not more than two months old) from any service provider.
• Property or municipal tax receipt.
• Pension payment orders issued to retired employees of Central/State Government departments, public sector undertakings, or statutory bodies, if they contain an address.
• Letter of accommodation from employer (issued by State or Central Government departments, public sector undertakings, or statutory bodies).

Income Proof: For Salaried Individuals

• Bank statement showing salary credits for the latest 3 months.
• Latest two years' Income Tax Returns (ITR).
• Latest year Form 16.

Income Proof: For Self-Employed Individuals

• Latest 2 years' Income Tax Returns (ITR) along with computation of income (if not filed in the same year).
• If computation of income is not available: Latest 3 years' Income Tax Returns (ITR) (if not filed in the same year).
• CA-certified audited balance sheet and Profit & Loss account for the last 2 years, along with Form 26AS.

Why Documents Are Required for Term Plan Purchase

• It provides proof of your residency in India.
• Keeps your insurer updated on your medical history and current health situation.
• Helps ensure a hassle-free application process.
• Assures you of the company’s policy benefits.
• Helps ease the policy renewal process.
• Helps in fast settlement of claims during a time of need.
• Sharing required documents for the term plan also builds trust between you and the insurer.

If you are your family’s sole breadwinner and something unfortunate happens to you, your family, already dealing with emotional turmoil, will also face financial setbacks. By ensuring proper documentation, you can help your family avoid claim settlement delays and other hassles when they visit the insurance company to file a claim. You must keep in mind that if you do not provide the necessary documents for the term plan, the policy claim settlement will be delayed. Your insurer can expedite the claim settlement if you provide the correct set of documents for the term plan.

What to Do If You Lose Your Original Term Insurance Documents?

• Inform your insurance provider right away.
• Publish an advertisement about the misplaced or lost documents in a local newspaper.
• After a month, share the published advertisement with the insurer.
• Sign an indemnity bond stating that you will return the original documents to the insurer if they are later discovered.
• Once these steps are completed, the insurance company will issue duplicate term insurance documents.