Like death, life insurance is a fact of life. Its purpose is to ensure financial security for the loved ones left behind. Or for use in case of a disabling accident or illness. Many life insurance policies can be adjusted with specific details, known as â€˜riders.â€™
Despite life insurance is a necessity, there remains a lot of confusion over how it works. Particularly the claim settlement process. The process is generally the same no matter which country you reside in. In India, the process is simple, as insurance companies respect that a life insurance claim is not emotionally simple.
We will walk you through the life insurance claim process, so you are prepared when the time comes.
Types of Life Insurance Claims
The first thing you need to know about life insurance claims is there are several different types. The death claim is, sadly, the most common. But itâ€™s not the only type of claim. There are three main types of life insurance claims.
Aside from the death claim, there are also insurance claims for critical illness/disability, and a maturity claim. A maturity claim is when the term limit of the policy expires. You can choose to renew or file a claim. In 2020, the renewal period for life insurance claims was extended for residents of India.
4 Steps to Claiming On Life Insurance Policies
Claiming on an insurance policy is a simple, four-step process. In the event of an illness or death, your insurance agent understands that it is likely a difficult time in your life. To that end, the process is straightforward. Additionally, the claims are handled in a reasonable amount of time once properly filed.
When looking for an insurance agency, itâ€™s important to research their claims to payout ratio. Some companies have a ratio of 90%, meaning only 10% of claims are rejected. A significant portion of those are likely rejected due to missing or incomplete documentation.
These four easy steps will ensure your claim is handled thoroughly, and in a timely manner:
- Inform your insurance company of the death or disability. The very first step in processing a life insurance claim is letting your insurance company know of death or disability. This helps them prepare to file a claim on your behalf.
- Gather required documents to the insurance agency. The documents required include a death certificate if filing for a death claim. You will also need the original copy of the policy. In the event of accidental death, the insurance agent will need a copy of the police report, as well as the autopsy report.
- Present documentation with the claim. Once you have the documents compiled, send them to your agent. Your specific insurance policy may require additional documents. Your agent can advise you about any missing documents.
- The insurance company settles the claim. Once all the paperwork is verified to prove the claim, your insurance company will quickly settle the claim.
Life Insurance Policies Are Ever Evolving
Life insurance policies are not static. Many companies are constantly updating the terms of their life insurance policies. As noted, life insurance policies in India underwent several changes, including a longer renewal period. Itâ€™s always best to keep in contact with your agency for any changes that may affect your policy.
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