• Easy Steps To File Maturity Claims for LIC Policy

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    By Prarthana Gopal | 19 Sep 2019

    Easy steps to file maturity claims for LIC policy

    The Life Insurance Corporation of India (LIC) is the largest life insurance company in the nation. The company is renowned for its diverse range of policies that include term plans, ULIPs, endowment plans, money back plans, retirement plans, etc. While term plans offer only death benefits to policyholders, other plans provide a combination of both death benefits and maturity benefits. In order to receive the insurance money, a beneficiary must file for a claim with the company in both cases.

    Filing for a death claim involves extensive paperwork because the nominee or legal heir must provide detailed information on his/her relationship to the insured. Other regular documents associated with claim processing must also be filed along with this. In case of maturity claims, the paperwork involved is minimal. Since these requests are typically filed by the insured, it can be done easily without much hassles. Let’s take a look at the process involved in filing a maturity claim with the LIC.

    Policy discharge form

    When a policy is approaching its maturity date, LIC sends out a policy discharge form to the insured. This is typically done at least a month before the date of maturity. One important thing that must be noted here is that policy discharge forms will be sent only when the policy is in full effect with all the premiums paid. If a policy is lapsed due to non-payment of premiums, it is not eligible for maturity. The policyholder must fill the discharge form and send it back to the company along with the list of required documents.

    Documents required

    Filing a maturity claim requires various documents from the insured along with policy discharge form. The list of documents are given as follows:

    • Original policy documents
    • Photocopy of identity proof
    • Photocopy of address proof
    • Photocopy of age proof (if not previously submitted)
    • NEFT mandate with the bank details
    • A cancelled cheque leaf or a copy of the policyholder’s bank passbook
    • Details regarding any assignment or reassignment

    In order to ensure a smooth transfer, all the documents must be submitted to the company at least 5 to 7 days before the date of maturity of the policy. Once the documents are all submitted, the company will then proceed with the settlement process.

    Settlement process

    It is always better to file the claim directly by visiting the home branch rather than sending the documents through post. Once the documents are submitted, the company will initiate the claim settlement process. The company will verify the policy details and the documents submitted for the claim. After the verification process, the company will make the final payment to the policyholder. The maturity proceeds from a policy will be credited in the bank account provided by the policyholder.

    In case of money back policies, a particular sum of money will be paid to the policyholder on a periodical basis. Here, if the settlement amount is less than Rs.60,000, there is no need to file the policy discharge form. The proceeds will be paid automatically to the policyholder’s account once the maturity period is over. However, if the settlement amount is over Rs.60,000, it is mandatory to file the discharge form along with the required documents.

    Things to note

    While making an LIC maturity claim, it is necessary to take the following things in consideration:

    • If the policy dies after the maturity period but before receiving the claim amount, the settlement amount will be paid to the legal heir or nominee.
    • This maturity claim process applies only to policies that have maturity benefits and bonuses. This does not apply to term insurance covers.
    • If the policyholder does not receive the policy discharge form on time, it is better to check with LIC’s customer service or enquire directly with the branch.
    • If the policy has been taken in the name of another person, the right to give the discharge rests with the assignee.
    • If there are any doubts regarding the settlement process, the company’s customer service department can be contacted to provide guidance.

    Conclusion

    Receiving the settlement amount after the maturity period is quite easy. All the documents mentioned above must be submitted without fail to initiate the claim settlement process. If the policyholder does not receive the settlement amount even after two months of filing the claim, he/she can visit the branch office and enquire about the settlement.

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