According to the rules of the Insurance Regulatory and Development Authority of India (IRDAI), an insurer has to settle the death claims within 30 days of raising it. However, if they delay processing your claim due to any reason, they will have to pay you a penalty for the same.
How to Claim Term Insurance After Death? Process Explained
What is the Process of Claiming Term Insurance After Death?
Step 1: Intimating About the Claim to Insurance ProviderThe first step that you must take is to inform the insurer about the death of a policyholder to raise a claim. Once done, you can fill out an online application form, entering all the crucial details. While doing so, you must ensure that you enter these details correctly to avoid rejection.
Step 2: Keeping the Essential Documents ReadyYou should keep all essential documents ready as you might have to upload them when you fill in the online form. This prevents any mistake in your form fill-up as you can instantly verify all the data you are entering.
Step 3: Insurer Will Thoroughly Inspect Your ClaimAfter submitting an online form, the insurer will conduct a thorough inspection regarding your claim settlement of the policy. They will go through every point to determine if the policyholder fulfils all mentioned conditions of death specified in their plan before approval.
Step 4: Insurer Will Complete Your Claim Settlement Process
Once they see that all conditions are met, and there are no errors in the application form, they will approve your claim. Also, according to the policyholders' preferred payout mode, they will deposit the entire money at once or only the first instalment.
Additionally, you can keep all essential documents ready to complete the process efficiently without interruptions.
What Are the Documents Needed to Claim Term Insurance After Death?
You can keep some essential documents ready while raising a claim for the policy:
- Death certificate of the policyholder
- Your KYC documents such as an Aadhaar card, voter card, passport, and PAN card.
- Original copy of policy documents that an insurer provides.
- Any additional documents, such as a copy of FIR, if the policyholder dies due to unnatural causes.
- A doctor’s certificate if the policyholder was admitted to a hospital before death.
- Essential medical records of the policyholder.
Apart from this, there are some essential factors that you should keep in mind before you submit your claim application.
Which Factors Should You Keep in Mind Before Submitting a Term Insurance Claim?
The factors that you must keep in mind before knowing how to claim a life insurance policy after death are as follows:
- Check all terms and conditions of the policy to make sure that circumstance under which a policyholder has died is included. Also, go through other conditions that are mentioned in the policy.
- Verify if the policyholder has declared all their pre-existing medical conditions. This is essential because if the insurance providers come across medical conditions that are hidden, they will reject your claim.
- Make sure you correctly fill out the claim form without any mistakes or errors. Otherwise, upon noticing it during verification, insurance companies can reject your claim.
However, before raising a claim, you must go through some essential conditions that you should fulfil to get approval.
What Are the Important Conditions to Claim Term Insurance?
The vital conditions that you should fulfil to raise a claim are as follows:
- It is essential to ensure that the policyholder dies of natural reasons only and there are no conspiracies involved.
- There should be no criminal charges on the beneficiary raising the claim.
- You must have the original policy papers and other necessary documents to furnish essential details and raise a claim accurately.
The terms and conditions vary significantly with different policies available in the market. Hence, before raising a claim, you should read them carefully. However, if you do not understand any of these, you can contact the insurer.
Now that you know how to claim term insurance after the death of the policyholder, you have to adhere to them strictly to correctly raise a claim. This will ensure that you will get claim approval in one go if all terms and conditions of the policy are fulfilled.
Frequently Asked Questions
Some prominent reasons for claim rejection include:
- Filling in incorrect details in the application form.
- Concealing crucial medical conditions from the insurer while purchasing the policy.
- If the policyholder has not paid the premiums of the plan due to which, it lapses.
- Hiding unhealthy lifestyle habits such as smoking and alcohol consumption.
- Not checking the exclusion section of the policy.
No, usually there is no time limit for raising a claim. However, it would be beneficial to raise a claim as early as possible so that you can get financial support after the death of a policyholder.
It usually requires up to two weeks to two months to process a claim. However, it can vary with the insurer as well as the procedure can differ slightly.
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- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
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