How To Make Death Claims On Your Term Insurance Policy?
Updated On Nov 26, 2021
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Term coverage is typically purchased as a safety net to assist your family in navigating any situation in your absence without having to worry about finances. The benefits of term insurance can only be realised during a financial crisis or when faced with a significant financial burden. The death claim compensation helps the policyholder's family cope financially.
The nominees of a life insurance policy make an official request called a death claim. In the event of the insured's death, the nominee requests that the Life Cover sum be paid. The death benefit is used to alleviate financial hardship for the beneficiaries. The money can even be utilised to pay for your children's schooling or your dependent parents' expenditures.
Steps To Get A Death Claim On Your Term Policy
Following are the steps you need to follow to attain a death claim on your term policy:
Step 1: Notify Your Insurance Provider
The first stage in the claim settlement process is to notify the insurance company that a claim has been filed. The nominee or claimant must notify the insurance company of the policyholder's death as soon as possible. This is the initial stage in the claim settlement procedure, after which the claimant must either phone the insurer's helpline number or send an email to the appropriate email ID provided for this reason to file a claim.
Step 2 - Processing of Reimbursement
The next step in the claim process is the filing of claim supporting documentation after the insurer has been properly notified of the policyholder's death. In order to substantiate the death claim, the claimant/nominee must produce the papers that the insurance has requested. If the death was caused by natural or unavoidable circumstances, this is essential. The Claim Assistance team will begin evaluating the claim once the insurer has received all of the required paperwork. They will look over the claim as well as the supporting documents and the nominee's declaration, as well as validating the information. The candidate may be asked to provide further documents to back up their claim.
Step 3 –Processing & Payment of Claims
After reviewing the claim and supporting documents/evidence, the Claims Assistance team will decide whether to approve or deny the claim. If the claim is approved, the insurer will settle the claim, which means the money insured will be paid to the nominee in the manner specified by the policyholder. ECS is the most common method of payment for life insurance claims. The insurer will require the beneficiary to provide their bank account information, a photocopy of their bank account passbook, and a cancelled check in order to do so.
Documents Required For Making a Death Benefit Claim
Here is a list of documents you will need while claiming a death benefit:
- Proof of the nominee's identity
- Policy terms in their original form
- The insurer's proof of age
- Certificate of Cremation
- The policyholder's death certificate
- Medical records
- Forms of discharge
The life insurance policy has evolved into a multipurpose financial tool in recent years. The premiums are used to make investments as well as to guarantee death benefits. Guaranteed returns are also included in the strategy. The long-term strategy hasn't changed significantly. The term insurance premium is still exclusively used to ensure your beneficiary's protection in the event of unforeseen events.
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.