How To Claim Term Insurance After Death

Term insurance is a form of life insurance policy that provides a death benefit to the policyholder’s beneficiaries in case the policyholder dies while the policy is running. For this death benefit or this coverage, the policyholder must pay a set amount known as the premium amount on a regular basis. In the event of a policyholder’s death, family members must file a claim to receive the sum promised.

Read: How To Cancel A Term Insurance Policy?

Types of deaths covered by term insurance policies

The term insurance policy does not cover all types of deaths. There is a generic list of deaths that are covered by term insurance policies; the exact list will depend on the terms and circumstances of the specific policy. Deaths covered under term insurance plans are:

• Natural death or medical condition
• Accidental Death
• Deaths caused by pre-existing diseases (announced at the time of purchase)
• Deaths caused by critical illness
• Death caused by illness
• Deaths caused by COVID-19

The types of death that are not covered by term insurance plans

• Death as a result of illicit activity are not covered under Term Insurance
• Deaths caused by pre-existing diseases (those diseases which are not stated at the time of policy purchase)
• If any policy holder dies as a result of driving due to consumption of alcohol or drugs
• Injuries caused by oneself leading to death is not covered.
•  Suicidal death is not covered.
• Death as a result of engaging in dangerous activities
• Death as a result of participating in dangerous sports (if not told while obtaining the policy or if a corresponding add-on is not purchased)
• Childbirth-related death or pregnancy problems
• Death from sexually transmitted infections (such as HIV)
• Death as a result of intoxication
• Natural calamity

Reasons for rejecting a claim by the insurance company:

• Inconsistent data
• False Data
• Delay in premium payment
• No mention of the nominee
• Medical documents that have not been disclosed
• Undisclosed previous or existing insurance coverage
• Policy that has expired

How to claim term insurance after death of the policy holder?

• A step-by-step procedure for claiming term insurance after the death of the insured is provided.
• Following the death of the policyholder, the beneficiary must take the following actions to receive the death benefits: Please keep in mind that this is just an overview; the specific procedures and process will be determined by the insurer.
• Notify the insurance: This is the first step that recipients must take in order to receive a death benefit. The beneficiary can notify the insurance provider of the policyholder’s death by calling the customer service number, visiting the branch, or sending an email.
• Provide details of the policyholder: The beneficiary will be asked to provide the policyholder’s name, current address, date of birth, and reason for death.
• Provide the policy number to the insurance company: Not only that, but the beneficiary is expected to know the policy number (which may be found in the policy documentation) as well as any other necessary documents required to file a claim. To validate the death, the insurance company may request an original death certificate in specific situations.
• Inform about the policyholder’s death: The policyholder’s death must be reported within the time frame specified by the insurance company. This restriction, however, may vary from company to company. Most insurance companies observe a 30-day time limit from the date of the policyholder’s death.
• Fill out the death claim form completely. The death claim form must be filled out completely, including the policyholder’s name, age, the reason for death, and any other information requested by the insurance company.
• Collect all the necessary documents: Having all of the essential documentation in hand can make the process of filling out the death claim form much easier.
• Produce the proof of legal entitlement: In cases where no beneficiaries are named, the claimant must give proof that they are lawfully entitled to the claim.
• Submit the death claim form. When all of the required information has been entered, the form is ready to be submitted. Beneficiaries can submit the paperwork in person at the home branch where the insurance was issued or online, if accessible.
• Submit the necessary documents: Beneficiaries are required to submit all the necessary documents.
• The insurance company assesses the claim: When the insurance provider receives all of the required documents, they will begin the process of assessing and analysing them.
• Verification of documents: All documentation submitted, including medical reports, police records, and other required documents, will be verified by the insurance company.
• Different types of review methods for different types of deaths: Each type of death will have a unique review method. If the policyholder dies within three years of purchasing the policy, for example, detailed investigative time may be necessary.

The insurance company will decide whether the claim should be settled or refused at this point. If the claim is accepted, the death benefit will be paid by the insurance company. If not, the refusal will be explained

Documents needed to file a claim after the death of a policyholder

These are the documents that the beneficiaries must provide in order to claim the benefits of the term insurance, regardless of the sort of death that occurred.

• Authentic policy documents
• The claim form which is completed correctly.
• Original death certificate, signed by a physician or issued by a government civil authority
• A statement from the beneficiary containing information about himself and the policyholder
• Beneficiary identity evidence (Aadhaar Card, voter ID, PAN Card, passport, etc.)
• Proof of the policyholder’s age
• Cancelled cheque and NEFT mandate
• Additional documents are required depending on the reason for death:

if the policyholder died as a result of a medical condition.

• Statement of the doctor
• Proof of treatment received at the hospital

If the policyholder died as a result of an accident or an unnatural death,

• FIR (First Information Report) registered copy
• Post-mortem examination
• Report on the Police Investigation

Conclusion

Before moving on to the process of claim settlement, the nominee can seek guidance from an insurance agent of the insurance company. The insurance agents guide for everything, such as financial planning, income tax savings, how to get death benefits, and the premium payment of the life insurance claim from the term insurance company.

Filing a life insurance claim with the life insurance company after the death of the policyholder requires the nominee to be thoroughly aware of the process, since poorly filled applications or missing any steps may result in claim denial.