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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