All About Claim Settlement Procedure for Life Insurance Rider

Updated On Jul 19, 2021

Life Insurance Rider Claim Settlement Procedure
Endnotes

The very objective of a life insurance policy is to safeguard the main breadwinner's life and his family’s future. Life insurance delivers financial rewards to the policyholder at his crucial life milestones such as child’s access to higher education and nuptials, health care emergency and retirement or after the event of his sad death. The benefit(s) obtained from the acquisition of a life insurance policy in exchange of the premiums paid is called a claim.

There are three types of claims, namely, Death Claim, Maturity Claim and Rider Claim. Here we will be discussing the Claim Settlement Procedure for Life Insurance Riders. Go on reading to know more about the rider.

Life Insurance Rider Claim Settlement Procedure

The method of resolving the rider's claim varies on the rider type. At times, the settlement is parallel with the death rate for riders such as accidental death or premium waiver.

Required documents for rider claims are as follows:

Critical Illness Rider

A critical illness rider allows the insured to claim a part of the death penalty (also known as an accelerated death benefit) for medical bills and other costs when a licenced doctor or physician has a terminal disease diagnosis. The corresponding death benefit may also be used by policyholders if necessary to pay for the long-term care.

Critical Illness Rider can be claimed only if the insured has died due to the diseases mentioned in the rider form. However it does not provide any maturity benefits to the insured. The rider provides for your overall medical bills, the nominee just needs to take the following documents and approach the insurance company.

Original policy paper
Form of claim
Records of hospital entry
Medical reporting
Summary of unloading
Any other insurance company requirements

Accidental Disability Rider

Accidental Disability Benefit Rider is an optional benefit offered upon payment of additional premium. Rider Death & Disability Benefit The rider is a part of the basic plans, such as LIC's Jeevan Anand, Jeevan Labh and other plans, and in the case of accident death or injury. Accidental death, for example, is sudden death; accident death. This rider cannot be purchased independently, but only with a basic plan. Apart from the death claim, you are also entitled to receive maturity benefits under this rider. Here are the needed documents that the insurance provider will ask for:

Original policy paper
Form of claim
Certified FIR copy
Medical documents include costs of drugs and findings for tests
Doctor's disability certificate
Injured person photograph with disability

Hospital Cash Rider/ HospiCash Rider

Hospital Cash Rider or HospiCash Rider is an additional health benefit rider added to the base policy at an extra cost. It aims to provide for your hospitalization, treatment, medicines etc costs when you are hospitalized. This is a predetermined daily benefit for each day of hospitalisation paid to policyholders if their hospitalisation is valid for at least 48 hours. However there are a plethora of terms and conditions which upon fulfillment, you can go for your claim with these documents but make sure you read the policy carefully to avoid claim rejection at the end moment.

Original policy paper
Form of claim
Medical data like medical bills, lab reports and prescription to the physician
Discharge Card issued by the hospital.

Endnotes

Riders are a boon to the policy and if there comes a time where you actually need to claim their benefits, they can assist you monetarily and can help you sail through adverse timings but to avail all these benefits, buying a rider is not enough, you have to understand the crucialities of the plan as well. Carefully examine the terms and conditions along with the inclusions and exclusions to make sure you can get the benefits in future.