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Term Insurance, is simply a relief plan for individuals who are sole-bread winners for their families. This is because they believe, the term insurance plan they have bought will help their family overcome the financial issues, in case if any mishap happens to him/them.
Term insurance policies are designed such that after the policyholder’s death, their family receives financial assistance in the form of lump-sum money or part payments. However, to get this financial assistance from the term policy, the beneficiary or the nominee must claim the policy.
There are different types of a term insurance claim that every individual must know. Here below we are discussing the different types of insurance claims.
Read to know about them!
Term Insurance Claim… Explained!
Term Insurance is defined with different features and benefits, which are selected and bought by the insurance buyers depending on their requirements. A policyholder buys a term insurance policy for a certain period and pays the premium for the decided time.
The benefits from the term insurance policy can be enjoyed by the policyholder's family in case of his untimely death, during the policy tenure.
How can one get the benefits from the term insurance policy? The benefits from the term insurance policy can be obtained through different types of term insurance claims by the beneficiary or the nominee.
Types Of Life Insurance Claims….
Term insurance involves two types of claims: maturity claims and death claims.
Maturity claims: Many of us purchase insurance hoping to survive the full term of the policy and be eligible to claim the maturity value. In this case, you file a claim to collect the maturity amount from the insurance company once the agreed-upon tenure is over.
Death claims: In the event of your death, the claim amount is paid to the person you have assigned as your nominee in the policy document.
How Are Term Insurance Claims Settled?
There are 3 things you must know and remember about the claims settlement process:
Claim intimation: The insurance company cannot begin the claim settlement process without receiving the required information from the claimant. Thus, your family or nominee should first inform the insurance company about the claim via a claims form. This form should be submitted to the financial advisor or the insurance office. These days, you can also download the form from the insurance company’s website.
Documents required: Just as purchasing a policy requires certain documents to be submitted, some basic documents, like the original policy document, the claim form, the death certificate, and hospital records (if applicable), are required for the claim as well. The insurance company informs the concerned person, in writing if additional documents are needed.
Time allotted: Unfortunate circumstances may not allow our loved ones to pursue claim settlement immediately, but it is advisable to proceed as soon as possible. Notably, according to the guidelines provided by the IRDA, the insurance company is obliged to settle all claims within 30 days of receiving all documents. If your insurance company feels a further investigation is required, it can take up to a maximum of six months from the date of first receiving your claim intimation.
You must know that claiming term insurance is the most important step in the whole process. Be sure to know these steps and you’ll face no problem getting the coverage you signed up to receive.
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For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).