The loss of a loved one is very painful. Not only does it cause emotional distress but financial instability too. One might have to take a break from one’s job in order to cope with the situation. If the deceased person happened to be the sole earning member of the family, the family members lose a source of income.
While it is nearly impossible to carry out even day-to-day activities when going through grief, one may have to deal with various financial and legal issues. Resolving such issues can be overwhelming. But with the right life insurance policy, a person can at least reduce the financial burden, which to a certain extent, could help reduce the overall burden.
The thought of a life insurance policy may bring a lump in the throat but on the brighter side, a few life insurance policies provide a lump-sum payout if the policyholder survives the complete policy tenure known as the maturity benefit.
Read on to find out how to make maturity or death claims.
Whether a person wishes to make a death claim or a maturity claim, the procedure has three simple steps.
Firstly, the nominee is required to intimate the company in case of death of the life assured. In case of maturity, the insurance company would have sent a discharge voucher two to three months prior to the day of maturity. The policyholder is required to sign and send the voucher to the insurance company.
All the relevant documents required are to be submitted to the insurance company, after which the claim assistance department will take over. The claim assistance department will assess the documents and the nominee declaration, and verify the same. Other relevant documents may be requested if the need arises.
Once the documents are verified, the claim is accepted. The insurer will then settle the claim. Most life insurance companies prefer the ECS mode to settle the claim. The company will request the individual to submit attested bank account details to transfer the claim amount. Once that is done, the death or maturity amount promised is transferred to the nominee/policyholder’s account.
The above-mentioned documents are the main documents required to be submitted to the life insurance company. In case the insurer requests for additional documents, the same will have to be submitted at the earliest to receive the death claim/maturity claim amount as soon as possible.
The insured individual’s spouse is the direct beneficiary of the life insurance policy. Failing the spouse, the children including adopted children, foster children, and step-children are considered beneficiaries. If not the children, the life assured’s parents will be the beneficiaries. Failing the parents, the insured member’s estate will be the beneficiary.
If the primary beneficiary dies along with the life assured, the contingent beneficiary will receive the death claim amount. If there is no contingent beneficiary or legal heir, the benefits are provided to the insured individual’s estate.
In most cases, the death claim settlement takes 30 days. Once the documents are submitted and verified, the insurance company provides the payout immediately.
As long as all the documents are duly filled with valid and authentic information, the claim will not be rejected. However, if the insurance company finds the claim to be fraudulent, it may reject the claim.
The exclusions of the life insurance can be found in the policy document. The most common exclusion is the suicide exclusion. In the event that the life assured commits suicide within 1 year of purchase of the policy, the death benefit is not payable.