Term Insurance

What Is Needed To Claim Term Insurance?

by SMCIB on Wednesday, 05 April 2023

What Is Needed To Claim Term Insurance?

A term insurance plan serves as a financial safety net for your family members that can help them maintain their lifestyle as well as long-term and short-term financial goals when you are not around.

However, to avail of the death benefit, your nominee has to file a claim. And, the claim process can seem overwhelming when they are already going through such a difficult time. It is your responsibility to make sure they are well aware of the entire claim process - so that when the need arises, the claim amount will reach them promptly, alleviating their financial stress.

In this article, we will discuss the term insurance claim process along with the documents required to settle the claim. Let’s begin.
 

What is Term Insurance?
If you aim to secure the financial future of your loved ones, buying a term insurance plan is the best idea. In case of your sudden death, your insurer will pay a fixed sum of money known as ‘sum assured’ to your family members. They can use this money to meet their daily needs along with fulfilling their long-term and short-term goals like repaying loans, funding the education of children, weddings, etc. They won’t have to compromise on their lifestyle and dreams when you are not around them.

However, remember that a term insurance plan is a pure risk insurance cover. You won’t receive any benefits if you survive the policy term.

 

What Is Needed To Claim Term Insurance?
Your nominee can make a claim under the term insurance policy in case of your unfortunate demise during the policy term. They will have to submit documents while filing the same.

?In case of a natural death

  1. Original copy of policy certificate
  2. Copy of death certificate by the local authority
  3. Address proof of the nominee
  4. Photo identity proof
  5. Cancelled cheque
  6. Copy of bank passbook
  7. Copy of medico-legal cause of death
  8. Medical records like admission notes, discharge or death summary, test reports, etc.

?In case of an unnatural death

  1. Original copy of policy certificate
  2. Copy of death certificate by the local authority
  3. Address proof of the nominee
  4. Photo identity proof
  5. Cancelled cheque
  6. Copy of bank passbook
  7. Copy of medico-legal cause of death
  8. Medical records like admission notes, discharge or death summary, test reports, etc.
  9. Copy of FIR
  10. Panchanama
  11. Inquest report
  12. Driving license
  13. Postmortem report
     

How to Claim Term Insurance?
To file a term insurance claim, your nominee needs to follow these steps -

1️⃣ Informing the insurer
In order to file a claim, your nominee needs to first contact the insurer.  They can do this by visiting the insurer’s branch office or via phone, email, or website. The claim process will start immediately after the insurer is notified.


2️⃣ Filling out the claim form and submitting the relevant documents
To support the claim, your nominee has to submit several documents along with a duly filled claim form. Without a proper claim form or documents, the claim will not be processed.

The claim form can be availed from your insurer’s website or the branch office.

After submitting the documents, your insurer will provide a system-generated acknowledgement of receipt to your nominee. Your nominee should keep scanned soft copies of the entire documents they have submitted for future purposes.

The list of documents may differ across insurance companies. So, check with your insurer the list of documents your nominee needs to submit while filing a claim.
 

3️⃣ Submitting any additional documents
Your insurance company might ask your nominee to submit some additional documents to support the claim. These must be submitted promptly so as to avoid unnecessary delays during the claim settlement process.


4️⃣ Claim approval and payment
The last step involves the assessment of the documents. After due verification, the insurer may either accept or reject the claim. If the claim is approved, your nominee will receive the claim amount according to the payout option chosen during the policy purchase.

 

Conclusion
Filing a claim can be daunting. So, it is important that your nominee is aware of the steps involved in filing a claim beforehand. This will make it easier for them to manage the process efficiently and have a smooth claim experience.

 

 

 

 

Insurance Knowledge Videos