Term life insurance is a type of life insurance that gives your family adequate financial protection in the event of your untimely death. A term insurance plan works as a financial tool that gives death benefits if the policyholder dies during the active period of the insurance plan.
And while buying a term insurance, you have to access your needs to get an adequate amount of coverage so your family can sustain itself easily after your absence. And for this, you have to pay a premium which you can calculate by using a term insurance calculator.
But to get the death benefit, ensure that proper claim procedure is followed to guarantee that your family receives the insurance benefit.
In this article, we will look into the term plan claim process, including the paperwork needed, the steps involved, and other important details.
How to File Term Insurance Claim?
Here are the steps included in the term insurance claim process:
Step 1: Intimation of Claim
The first step is to notify the insurance company of the claim by calling the insurance provider’s customer service line or going to the closest branch location. And then, you have to provide the basic information, such as your insurance coverage, the time and manner of your death, and your contact information.
Step 2: Document Submission
Following the notification of a term policy claim, the insurance provider will give you a claim form, which you must complete and submit with the supporting documentation listed below:
- The local authorities’ official gives a copy of the death certificate
- The original policy documents for verification
- A copy of your identification proof, such as your passport, Aadhar card, or PAN card.
- Medical records if a medical condition was the cause of death
- A copy of the police FIR if the cause of death was an accident or an unnatural cause.
- A copy of the post-mortem report if the cause of death was an accident or another unnatural cause.
Step 3: Claim Processing
After receiving the claim and getting the required documents, the insurance company will check the claim’s validity and process the claim. And if the claim is determined to be valid, they will process the claim. Although the processing period for claims may vary from insurance company to insurance company, it typically takes 15 to 30 days.
However, the policies of some companies, like Tata AIA term insurance come with features and benefits that help settle the claim easily.
Step 4: Payment
Following the processing of the claim, the insurance provider will begin paying the assigned nominee or beneficiary by the policy terms. The payout may be made in the form of a lump sum or instalments, according to the terms and conditions of the policy.
Important Points to Remember
These are some key considerations for making a term policy claim:
- After the death of the policyholder Inform the insurance company as soon as possible because the majority of insurance companies have a deadline by which the claim must be intimated.
- It is important to keep safe and maintain access to the original policy documents that must be produced when making a claim.
- It is important to provide complete and correct information while filling out the claim form and sending your supporting documentation to prevent delays or rejections.
- Sometimes it is also necessary to be patient, as the claim processing period varies from insurance company to insurance company.
- And lastly, to prevent conflicts or delays in the claim settlement process, it is also important to make sure that the nomination information indicated in the policy is current and accurate.
A term life insurance claim can be complicated to file, especially after a loved one dies. But it is necessary to sustain a better future for the whole family. Therefore, adhering to the proper procedure and giving accurate information might help you guarantee a simple and transparent claim settlement process. In addition, when buying a term insurance policy, you can use a term insurance calculator to calculate term insurance costs.
And remember to choose the best insurance provider who offers easy and quick claims to the beneficiaries. Also, remember to read and comprehend the policy terms and conditions to make an informed choice.