Where Can My Family Raise A Term Insurance Claim?
Updated On Jul 05, 2021
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Term insurance is a financial commitment that assures the financial stability and security of your family in the case of your death. If a person obtains this type of insurance, they will be obliged to pay a set sum on a regular basis. However, in the event of the insured's death at any time during the policy's term, the nominees named by him at the time of purchase will be paid a guaranteed sum of money. In the event of a sudden death, term insurance is the most effective type of insurance for providing financial stability to the insured and their family. Read on to learn which plan is best for your age group, as well as the advantages of buying a term insurance coverage.
What Are The Types of Term Insurance Claims?
There are different situations where you can file a claim settlement for your term insurance. They are-
1. Maturity Claim
A maturity claim is a sort of claim that is paid at the end of the term insurance plan's maturity period. If the policyholder serves until the end of the insurance, a specified sum is paid to him or her under this type of claim. The maturity claim is only paid if premiums are paid on time. Policyholders must fill out and sign a discharge form in order to receive this payment. Furthermore, according to the Income Tax Act, the maturity claim amount is tax-free.
2. Death Claim
A death claim is a form of claim in which the family member or the nominee requests death benefits in the event that the policyholder passes away. In such cases, the policy's stipulated sum insured amount is paid to the nominee following the policyholder's death. To receive the claim amount, the insurance company must be notified of the policyholder's death, which may include the policy number, date of death, cause of death, and the policy tenure till the insurer is responsible to compensate. According to Section 10(10D) of the Income Tax Act, the death benefit is likewise tax-free.
3. Rider Claim
Riders are optional features that policyholders can purchase for an additional premium cost when purchasing a term insurance policy. Policyholders who opt for the rider claim will be able to receive compensation for events other than maturity or death. Critical Illness Rider, Accidental Total or Permanent Disability Rider, and Waiver of Premium Rider are all common term insurance riders. Any of these riders purchased on the policyholder's behalf by the nominee can be claimed by the nominee.
Steps To File A Claim Settlement For Term Insurance
The following is the procedure that you can follow to claim your term insurance-
1. Claim Intimation
The nominee must notify the insurance company of the claim as soon as possible, either online or offline. The claim notification must be accompanied by policyholder information such as the policy number, policyholder's name, cause of death, location of death, and nominee information. The claimant has the option of visiting the insurance provider in person or downloading the claim paperwork from the website.
2. Submission of Records
To begin the claim settlement, the nominee must present all essential and relevant documents. The claimant's paperwork will be examined by the insurance company, and additional documents may be requested if necessary. It is necessary to submit the correct documentation; otherwise, a claim request may be rejected. Because documents are so important in the claim settlement process, claimants should read the terms and conditions to learn about the required documents for their claim.
3. Settlement of Term Insurance Claim
Once the nominee has provided the paperwork to the insurance company, the insurer is required by the Insurance Regulatory and Development Authority of India to settle the claim within 30 days (IRDAI). Even if the investigation of documents and other data takes longer, the insurance company should finish the procedure within 6 months of receiving the claim notification.
Take Away
Although the procedure of filing a claim for term insurance is straightforward, it might nevertheless be denied for a variety of reasons. If the policyholder does not pay the premiums, your claim is likely to be denied. When making a claim settlement, make sure to follow the policy's terms and conditions to avoid rejection.
You may also like to read:-
- Claim Settlement Ratio Of Life Insurance Companies
- Do I Need To Undergo A Medical Test Before Buying A Term Insurance Plan?
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.
