Death Claim: Documents Required For a Life Insurance Claim

Death cannot be neglected in a person’s life. One cannot replace the pain caused from the loss of the individual, but financial support can be provided to his or her family by getting a life insurance policy. If a person is insured at the time of death, his beneficiary can get the insurance claim.

Filing an insurance claim can be a tedious task after the death of a loved one. The beneficiary may feel that the value of the deceased person has reduced to an amount by filing a claim. Life insurance ensures that the deceased person’s family will not have to face financial troubles while dealing with the death of their family member.

What is Life Insurance?
It is a contract between the insurance company and the policy holder, where the company agrees to pay a lump sum amount to the policy holder’s nominees after the death of policy holder. The policy holder will pay premium every month to the insurance company. Life Insurance policy protects the policy holder’s family from financial losses in case of sudden demise of policy holder.

Death Claim-
If the policy holder dies before the date of maturity, claim is payable to the nominee as a death claim. The nominee entitled to the claims must complete certain death claim forms giving proof of the death and establishing the nominee’s right to such proceeds. When the claim is filed, the company is said to have received a death claim.

* When the payment is made at the end of the stipulated policy term that is known as maturity claim.

Process of Death Claim-
Death of the policy holder can provide financial benefits to the family members in the form of death claims. The nominee should know the policy and its procedure to claim the insurance or to file the claim. Here is the process as to how to claim the insurance and the documents required-

1.      Inform about death-
To get the insurance cover, the most important thing is to notify about the death of policy holder to the insurance company. Interact with insurance company and intimate them by giving them a write up as a proof for the claim.
2.      Know the type of death-
According to insurance companies, death can be early or non-early death depending on the time from which the policy is made. Early death is the one within a span of three years from the time at which the policy is made. For each type of death, different sets of documents are required.
3.      Documents Required-
Depending on the type of death, get a claim application and a checklist of all the documents necessary from the company and arrange them accordingly.
·         Non-Early and a natural death claim will need documents like-
ü  Death certificate from the municipal authority
ü  Age proof
ü  Policy documents original and few photo copies
ü  Nominee’s ID proof
ü  Discharge forms with nominee’s signature
ü  Medical certificates like the proof of cause of death.
·         Early death needs all the above mentioned statements along with-
ü  Hospital statements about admission and the illness type
ü  Certificate of the employer from his or her employee
ü  Certification about cremation
·         To claim policy for unnatural deaths, all the above mentioned documents need to be submitted along with-
ü  FIR (First Information Report) from the police
ü  Post Mortem Report
4.      Maintain Time-
The nominee needs to apply for the insurance claim with all the documents as soon as possible. After submitting all the documents required, wait for a stipulated time to collect your maturity amount.

Beneficiary/Nominee-
Beneficiary is the person who is designated to receive a death benefit from a life insurance policy. There are 3 types of beneficiaries in life insurance policy who can avail death benefits-

ü  Preferred Beneficiary-
This can be your spouse, parent, child or grandchild.
ü  Primary Beneficiary-
You can designate more than one primary beneficiary on the basis of the provisions of your insurance policy.
ü  Contingent Beneficiary-
Under this comes the person who will receive death benefits if the primary beneficiary dies before or at the same time as the policy holder. If there is no contingent beneficiary, the proceeds are passed to the estate.
The following will be the nominees unless otherwise specified by the insured-
·         The policy holder’s spouse, if not separated legally
·         If not spouse, the policy holder’s surviving children including step-children, adopted or foster children and children born less than 300 days from the date of the policy holder’s death, in equal shares among them
·         The policy holder’s father or mother, in equal shares between them or to the survivor of them.
·         In other case, the insured member’s estate.

Conclusion-
Each and every policy is different and is based on the insurer and the insured individual. It is wise to consult your insurance company and policy agent, read and understand every part of the insurance policy and then choose your claim.

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