How to File a Claim for a Term Life Insurance Policy?
How to File a Claim for a Term Life Insurance Policy?
8/2/23 6:00 AM
Enduring the loss of a loved one is an agonising experience. Apart from being emotionally stressful and traumatic, it can even put the survivors in a financially unpredictable situation. Therefore, having the right insurance term plan is crucial to resolve financial complexities. Despite what is commonly believed, filing a term insurance claim is not an arduous process. As the insurance companies understand the emotional challenge, the processes and the time needed for claim settlement have reduced.
A term insurance policy is imperative for a financially stable future, and the benefits of a term policy can be even more rewarding when purchased at a young age as the premiums are significantly cheaper. To find the best term life insurance, it is important to analyse your financial needs before choosing a term plan. Unfortunately, while Indians encourage saving, the term insurance meaning and its role in a financially stable future are not instilled among the young.
What is a Term Life Insurance Policy?
It is important to understand the exact term insurance meaning to buy the best term insurance policy. In its simplest, a term life insurance policy provides coverage for a pre-specified time. If the policyholder were to pass away while the term policy is active, the nominee receives a death benefit. There are different types of term insurance policies, such as:
- Level Term Plan: This is a basic term insurance policy with a fixed sum assured and a death benefit if the insured dies while the policy is in force.
- Return of Premium Plan: This plan has a maturity benefit wherein the premium paid is returned to the policyholder if they survive the tenure.
- Convertible Term Plan: The insurer has the option to convert the existing plan into a different one at a later date.
- Increasing and Decreasing Term Plan: The increasing term policy is one where the sum assured increases on an annual basis with a stable premium. For the decreasing term plan, the sum assured decreases to meet the decreasing insurance requirements.
- Term Plan with Riders: This plan can enhance existing term insurance coverage with rider options such as accidental death cover, critical illness cover, etc., on the payment of additional premium. Edelweiss Tokio term plans come with a choice of four riders to ensure that your family is protected against unforeseen scenarios.
To ensure that you buy the best term life insurance, it is important to compare term insurance plans to find the one that is the most suitable for your lifestyle. Another important factor to consider before you buy term insurance is the term insurance claim ratio.
What is the Term Insurance Claim Ratio?
The term insurance claim ratio gauges the percentage of insurance claims an insurance company has settled during a financial year. The term insurance claim ratio is one of the most crucial factors to consider before you buy term insurance as it helps you assess an insurer’s commitment to delivering timely insurance claim settlements.
How to File for a Term Insurance Claim?
A term insurance claim is a request filed by the beneficiary to avail of the death benefit if the insurer passes away while the term policy was still active. Most insurance companies have a hassle-free claim settlement process. The usual process of claim settlement is:
- Claim Intimation: To initiate the claim settlement process, the beneficiary must inform the insurance company as soon as possible. To ease out the process, keep certain personal information handy. This includes the policyholder’s name, date of birth, policy number, cause and place of death, etc. The claim form for the settlement either can be downloaded from the insurance company’s website, or the nominee can get it from the nearest branch office.
- Documents to Keep Available: The beneficiary will require the following documents for claim settlement:
» Age proof of the policyholder
» Policyholder’s death certificate
» Original term policy documents
» Other specific documents that the insurance company might require
- If the claim settlement is done within three years of policy initiation, the insurance company investigates to ensure that the claim is genuine by:
» Checking with the hospital to ensure that the deceased individual was admitted.
» Asking the hospital to provide the doctor’s certificate, medical records, etc., if the policyholder passes away owing to a critical illness.
» For death due to a flight crash, the insurance company confirms with the airline whether the policyholder was a passenger in the flight.
- Documents for Claim Settlement: Apart from the documents mentioned above, the beneficiary should submit the following documents as soon as possible:
» Claim form
» Original death certificate with an attested copy issued by the local municipal authority
» Original policy documents
» Beneficiary’s passport size photograph
» Beneficiary’s identity proof such as passport, PAN card
» Deeds of assignment or reassignment, if any
» Post-mortem report if any
» Medical records
» Last medical attendant certificate by the physician
- Settlement of Claim: If there is a delay in filing the claim or putting the right documents together, then the claim settlement date could stretch. However, from start to finish, the life insurance company should pay out a death claim within 60 days. It is usually highly uncommon for reputed companies to not pay within 30 days of the policyholder’s death.
- Important Inclusions and Exclusions: The insurance cover applies to both natural and unnatural death. If the cause of death is a suicide, the claim is settled after one year of the policy initiation. The exclusion and inclusion of the policy rely on the risk factor of the insured individual, meaning the benefit offered to a smoker differs from that of a non-smoker.
The Edelweiss Tokio Life Zindagi Plus is just the term plan you need with numerous benefits such as discounts on premiums when purchasing a higher assured sum, protecting the family’s future against unforeseen circumstances such as COVID-19, a better half benefit, etc. You can further enhance the coverage with 4 attractive riders. Additionally, Edelweiss Tokio life insurance reported an 83.44% claim settlement ratio for the financial year 2019-20.
So, for extensive term plan coverage and seamless claim settlement, check out our Zindagi Plus term insurance plan!
Aastha Mestry - Portfolio Manager
An Author and a Full-Time Portfolio Manager, Aastha has 6 years of experience working in the Insurance Industry with businesses globally. With a profound interest in traveling, Aastha also loves to blog in her free time.
With Edelweiss Tokio Zindagi Plus, Live Zindagi Unlimited!