Most people who have taken any Life Insurance policies do not educate their families about Claim Processing. They themselves are aware but their families are not. So, more than choosing the best Life Insurance Policy for your family, one needs to educate them about the claim procedure.
Why is that important?
It is MORE important for the families to know about the basics of getting the claim for Life Insurance than the Life Insured himself! This is so because, if the Life Insured is alive, then he will get "Maturity Claim" which is the easiest claim with least hassles. The MOST difficult to get claim is of course the "Death Claim" which need to be done by his family members in case the Life Insured dies. So, don't you think your families should be COMPLETELY aware of the process, so that they are not fooled or delayed in getting the claim!
What is a Death Claim?
Claim means to get the money due from the insurance company from where you have purchased the insurance policy. Death Claim is the Money that is provided to the nominee if the Life Insured dies within the Policy Tenure.
It is basically a request of the insured person to the insurance company for the Sum Assured of the other financial reimbursement that is due to the person for the policy taken.
The claim procedures along with the terms and conditions are usually explicitly mentioned in the policy document or contract. However it differs from policy to policy and from company to company. It also depends on how well you have maintained the policy and paid the premiums.
Step by step procedure for Death Claim Settlement for Life Insurance Policies:
Death Claim is the most sought after claim as it the primary reason behind purchase of a Life Insurance Policy. Thus in case of an emergency, the financial requirements of the family should be met with the least difficulty. Hence each and every individual should be aware of the procedures that usually need to be followed:
1. Intimate the insurance company- This should be done as soon as possible after the Life Insured expires. The nominee or the legal heirs need to intimate the local branch or contact the customer care number or the agent from whom the policy had been purchased with the policy details. The insurance company, on being intimated, would initiate the process of claim settlement.
2. Fill up the form- claim settlement that is provided by the branch or the agent at the time of intimation. It needs to be duly filled in with the correct information.
The easiest way to do it is by following the proposal form so that there is no mismatch of information and it is easiest for claim settlement.
3. Gather supporting documents- Certain supporting documents need to be provided along with the claim settlement form like the Policy Document, relevant age, identity proofs, etc. and any documents that the insurer may ask for.
4. Correct submission of the form- Ensuring that the form is duly submitted at the correct place and a written confirmation of the same is extremely important for easy claim processing. If the form is submitted at an incorrect location or it is lying with someone before submission, then it unnecessarily delays the entire process.
5. Check bank account details which are provided-The Bank Account details need to be confirmed and checked so that the money can be credited with ease and there is least hassle in the process.
Thus , if these basic steps are correctly followed, no one can stop you to get your claim at the earliest!
The author is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal
For more articles by Deepak Yohannan, please visit MyInsuranceClub.com
You may write to the author at Deepak@myinsuranceclub.com