A Detailed Guide To The Life Insurance Claim Process

   Life is both uncertain and unpredictable. You will not know what can happen to you in the next moment. This is the reason why everyone should have a life insurance. It will provide financial security to the family members if something happens to the earning member of the family.

In this article, we will discuss about the type of benefits and the steps involved in life insurance claims process.

But before that, it is important that we make our concepts clear about life insurance claims process. Let us begin with the definition.

What is life insurance claim process?

Life insurance claim process is the process by which the beneficiaries of a life insurance policy receive money from the insurer after the demise of the policy holder.

After the death of the policy holder, the family members have to inform the insurer about the unfortunate incident and submit some legal documents, such as the claim form and death certificate. They will also have to undergo a review of claim by the insurer. 

If the claim is approved, then the family members will get either get a lump sum amount of money at once or will get the money in installment. The type of payment will depend on the policy. The details of the life insurance claim policy may differ depending on the policy and insurance company.

This is the reason why family members of a policy holder should always review the policy. In case of any doubt, they must contact with the insurance company without any delay.

Types of benefits which can be claimed in life insurance

The types of benefits which can be claimed by the family members of a policy holder in life insurance are as follows:

●Death benefit: The most common type claim process in life insurance is death benefit. It ensures financial support and stability to the family of a policy holder after his or her death.

The nominees can survive with this benefit after the demise of policy holder. In order to receive insurance payment, the nominees will have to claim the death benefits.

●Maturity benefits: The next type of benefit is maturity benefit. This type of benefit is received by the policy holder if he or she lives more than the period of term insurance policy.

Furthermore, if the policy holder pays all the premiums within time and manages to complete the policy without any lapses, then he or she will get some additional benefits. 

●Rider benefits: The third type of benefit which can be claimed in life insurance is Rider benefit. Riders are additional benefits which are offered by an insurer by paying an extra premium along with the basic plan.

Different types of riders can be attached with life insurance policy, such as Accidental Rider, Hospital Cash Rider, Critical Illness Rider or Waiver of Premium Rider. 

Under this process, different riders can be settled through various means. Rider claims are settled after the completion of the process of death claim settlement. Other types of rider claims can be solved by submitting the necessary documents along with duty filled claim form and policy copy.

Steps for claiming life insurance

Some of the basic steps for claiming life insurance are as follows:

Claim initiation

In order to make any life insurance claim, the first thing which the family members or the nominees should do is to contact the insurer and intimate them about the claim. It is common for all insurers to ask the nominees to submit the claim either by writing or through their website. 

A death claim intimation will need some basic information, such as policy number, name of the policy holder, the relationship between the nominee and the policy holder and a death certificate. The type of information which will be required by the death claim intimation will usually depend on the type of policy selected by the policy holder.

The claim requirements of all life insurance policies are provided in their policy document. Nominees can also go to the nearest branch of the insurance company in order to find out more details regarding this step. It is recommended that nominees initiate a claim as soon as possible in order to avoid unnecessary delays to the claiming process. 

Submission of claim form and necessary documents

The next step is to submit the claim form along with the necessary documents. Nominees can submit the claim form either in writing or through the website of the insurance company. They can also send the form through mail.

Nominees will also have to submit some relevant documents along with the claim form. For life insurance claims, they will have to attach the death certificate, original policy bond and the claim form issued by the insurer. They may have to submit some supporting documents also, such as bank mandate, identity proof and address proof.

For accidental or disability claims, nominees will have to submit copies of test reports, medical records, discharge summary, admission records in hospitals, original policy bond and claim forms, along with other supporting documents.

Verification of the claims

The third step of the process is the verification of the claims. After the submission of the claim form, the insurance companies will then verify the claim with the submitted documents.

If the insurer finds that all the information provided in the documents are accurate, then the insurer will accept the claim and the insurance amount will be transferred to the rightful nominee.

 However, if the insurer finds out that the documents contain incomplete details, then the insurer can hold back the insurance amount until the nominee submits all the required details. Incorrect information by the nominee can lead to rejection of the insurance claim by the insurer.

Receiving the insurance amount

The last step of the process is to receive the insurance amount. Insurance amount will be directly transferred to the bank amount of the rightful nominee.

 Majority of insurers allow online filling and tracking of claims at present. Nominees can get updates about their insurance claim by giving correct contact number and email id to the insurer.

Life insurance policy act as a backbone for a family during uncertain times. Family members, other than the earning member can also apply for life insurance. One can follow the above mentioned steps for claiming their life insurance.