- Term Insurance Claim
- Steps for Filing Claim
- Tips for Easy Claim Settlement
How to Claim Term Insurance After Policyhoder’s Death?
After the policyholder’s demise, the beneficiary has this doubt in mind about the death insurance claim process. Well, the beneficiaries must start the claims procedure when the insured individual dies during the policy’s term to receive the insurance payout.
The basic stages involved in making a claim on term insurance after death are as follows, however, the precise process may differ between insurance companies:
Claim Intimation
The first and foremost step is to inform the insurance company about the death of the policyholder. You can do this by getting in touch with the insurer’s claims helpline number or customer service email. The insurance provider will ask the nominee to complete the paperwork and documentation.
Documents Required to Settle Death Claims
In case of natural death In case of accidental death Policy document in original Identity proof and address proof Claim form Application from the claimant Post-morterm report of the accident Hospital discharge summary and medical reports (in case of death due to illness) FIR report - Statement of attending doctor or certificate of medical attendance. * The insurer may ask for any other additional documents if required.
Claim verification and investigation
After you submit the documents required by the insurance company, they start verifying the death insurance claim. This investigation may include speaking with the insured person’s doctors, looking over their medical records, and, if necessary, gathering more information. This procedure serves to confirm that the claim raised is valid and complies with the terms and conditions of the policy.
Claim Settlement
The insurance provider will move forward with the settlement if the claim is granted. The payment choice selected at the time the insurance was purchased will determine whether the beneficiaries get the amount of the claim as a lump sum or in other ways. The insurance company may take 30 days to get the claim settled and deposit it to the beneficiary’s account.
Guidelines For a Quick and Easy Claim Settlement
After a loved one passes away, navigating the term insurance claim procedure can be difficult. The following advice will assist recipients in streamlining the procedure and ensuring a seamless claim settlement:
Notify the insurance provider right away
Inform the insurance company about the policyholder’s demise as soon as possible. This will start the claims procedure and assist in preventing any unnecessary delays.Gather the required paperwork
The original insurance policy document, the death certificate, and the claim form should all be gathered together in one place. This will speed up the claim procedure and stop any paperwork from getting lost.Ask the insurance provider for help
Contact the insurance company’s support department or claims helpline if you have any questions concerning the claim procedure. They will help you with any questions or worries you might have.Keep communication open and provide true information to the insurer
Make sure to be honest and accurate while completing the claim form or giving the insurance company any information. Any inconsistencies or false statements may result in the rejection or delay of your claim.- The inquiry procedure could take some time to complete, particularly if there are medical documents to analyze or if the root cause of death needs more study. Throughout this phase, it’s critical to exercise patience and work with the insurance provider.
Contact the insurance provider for follow-up
Actively follow through with the insurance provider if there are any holdups or if you haven’t heard anything about your claim. Regular communication can clarify the claim’s status and speed up the settlement process.Consult a specialist if necessary
When filing a claim, if you run into any difficulties or complications, you might want to consult a financial counselor or an insurance specialist for professional advice. They can offer advice and guarantee the protection of your liberties as a beneficiary.
Reasons for Claim Rejection By Insurers
Here are some common reasons of why the insurance claims are rejected by the insurance companies:
False information provided
Providing false information to the insurance company about the death reason of the policyholder, or hiding any substantial information can lead to the claim rejection.Unpaid premiums
If the policyholder has missed any premiums or the policy is inactive, the insurance company may reject your claim.Non-disclosure of lifestyle habits
Sometimes non-disclosure of lifestyle habits such as smoking or alcohol consumption may lead to the claim rejection. That’s why you should disclose everything asked by the insurer.Absence of nominee details in policy
If the details of the nominee are missing in the policy document, the claim can be rejected by the insurance company.Undisclosed health history
If the policyholder is suffering from some major disease and it’s undisclosed in the policy document, the insurance company may reject the claim on behalf of non-disclosure.
Understanding Claim Settlement Terms
Nominee/ Beneficiary
The person who will get the claim amount in case of the policyholder’s uncertain demise.Claim form
A form provided by the insurance company to the nominee. It has to be filled out by the nominee and submitted back to the insurer with true information.Claim documents
The documents required by the insurance company to settle the claims.Death benefit
The amount paid by the insurance company to the nominee in case of the policyholder’s unfortunate demise.Payout frequency
The frequency of the claim in which death benefit is provided to the nominee. It is chosen by the policyholder at the time of policy purchase. It can be a lump sum, installments, or a combination of both.
Conclusion
After a loved one passes away, filing a claim for term insurance is a crucial step in helping the family with finances. Beneficiaries can get through this challenging time with less difficulty if they comprehend the claim procedure and take the required actions. Throughout the claim procedure, keep in mind to notify the insurance provider right away, collect the necessary paperwork, and offer accurate information. Be patient throughout the inquiry and, if required, follow through with the insurance provider. Beneficiaries can secure an effortless claim settlement and get the money they need by following these steps and asking for help when necessary.
We at PolicyX.com take every claim seriously to ensure that the policyholder’s family can get their claims settled without any difficulty. From filing the claim to getting the claim disbursed we support you from end to end. If you have any questions or need expert guidance you can contact us at PolicyX.com or call us at our helpline number 1800 - 420 - 0269.
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Written By: Himanshu Kumar
Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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