How Can I Apply For Claims Under My Money Back Plan?

People usually go for the traditional policies as these plans provide higher benefits however after a long period. This long phase is called the policy term or tenure. But in case of some unexpected scenario where one has an urgent need of funds, the traditional policies are not useful. 

The sum assured as promised under the traditional policies can only be availed or claimed once the policy is matured. This is one of the major reasons people are moving towards the money-back policy plans as they offer a percentage of the sum assured on fixed intervals. This does come as a ray of hope in case of a financial crisis where immediate funds are required.

Money Back Plan And Its Benefits

If you purchase a money-back policy the plan offers a percentage of the sum assured at fixed intervals during the tenure of the policy. These are known as Survival benefits. Apart from the survival benefits, the remaining sum assured is paid along with the vested bonuses after the maturity of the policy.

We can understand this with an example If a person ‘A’ has purchased a money-back policy of Rs.10 lakh for a tenure of 20 years. The plan offers survival benefits of 20% of the Sum Assured after every 5 years during the policy tenure. 

This means ‘A’ is supposed to receive Rs. 2 Lakh every 5 years i.e. in the 5th, 10th, and the 15th year respectively. The remaining amount that is Rs.2 Lakh will be paid on maturity along with the promised bonuses.

How Can I Apply For Claims Under My Money Back Plan?

There are several benefits available to the life assured under a  money back policy. 

• Death Benefits 

In case of uncertain death of the life assured, the nominee gets the sum assured and the additional bonuses accumulated till the date of death. This does include the Survival benefits. Taking the above-mentioned scenario as an example, if the life assured dies during the 17th year, then in such a case the nominee will receive the sum assured and the bonuses as promised in the contract. The nominee won’t receive the remaining survival benefits.

•  Maturity Benefits 

This benefit can be claimed after the maturity of the policy. This includes the sum assured which is the total amount of the cover that is chosen by the life assured during the initiation of the policy. Another aspect of this claim is the bonus that is accumulated during the tenure of the policy cover which is declared by the insurer.

•  Survival Benefits 

To claim this benefit the life assured needs to pay the required premium promptly. This amount that is meant to be received by the insurer is fixed at several intervals. Again taking the above example of ‘A’, he is supposed to receive the survival benefits every 5th year which will sum up to a total of 8 lakh, which leaves the remaining sum of 2 lakh with the additional amounts.

 Claim Process For Money Back Insurance Plans

You can follow the below-mentioned steps to make a claim under your money back life insurance plan - 

1. Claim initiation - The claimant has to provide a claim statement to the Insurance company so that it can initiate the claim process. Basic information such as policy number, name of the insured person, date, place and cause of death ( In case of Death) and the name of the claimant should be provided.

2. Documents required- In order to process the claim the insurance company needs to verify the details. Hence, the claimant needs to provide documents such as death certificates, FIR reports, certificates and records by the consulting doctor ( In case of death by illness), and original policy documents.

3. Submission of complete documents- In order for the Insurer to come to a final decision the company needs the complete set of all the relevant documents. It is suggested that the claimant should compile all the required documents and submit them as soon as possible.

4. Settlement process- As per the guidelines of IRDAI, if all the required documents have been submitted and verified the Insurance company is liable to settle the claim within 30 days. If there are any further investigations required then the Insurance company has 90 days from the initiation of the claim and the settlement has to be done within 30 days thereafter.

For survival benefits, the insured person does not have to submit any extra documents as these amounts are transferred directly to the insured person’s bank account at fixed intervals as mentioned in the policy documents.

For claims on maturity, all the insurance company’s have their own maturity claim forms which can be downloaded from the respective company’s website or can be obtained from the local branch of the Insurance company

Conclusion

To get the best out of this policy you just need to make sure that you pay the premiums on time during the policy, and after this, just with a bit of paperwork, you can claim the benefits listed above.

Also Read:

Mutual Funds vs. Money Back Plans

Money Back Policy Is The Ideal Investment Option

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.