Indians have recently been taking up life insurance plans often, as it is one of the common and preferred ways to protect future family members. It has several advantages, including financially supporting the loved ones after you are not with them.
Life insurance policies come with a death benefit that will be paid to your nominee or beneficiary after your death. It can help in repaying outstanding loans and education fees and replace lost income. Hence, in this guide, you’ll learn how the application process for claiming life insurance plan death benefits.
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Stepwise Process of Applying for Death Benefits Online
Here is a step-by-step guide you can follow to apply for the death benefits of a life insurance plan online:
1. Inform the Insurance Company
It is the first step your family has to take to claim a death benefit. The beneficiary can inform the respective insurance provider of the policyholder’s demise by calling the customer service number, visiting the branch, or emailing.
They will ask for the policyholder’s name, latest address, birthdate, and how the person died. The claimant has to clarify their name, contact details, and how they are related. Moreover, the beneficiary is expected to know the life insurance policy number, which shall be found in the policy documents and other documents required to support the claim.
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2. Fill Out the Death Claim Form
After informing the insurance company, the beneficiary must fill out the claim form with proper details in all respects, like name, age, why the policyholder has died, and other information required by the insurance company. Having all the necessary documents in one’s hand will help ease the process of filing the form for a death claim.
Where no nominee or assignee has been declared, the claimant shall provide proof that they are legally entitled to receive the claim. After filling in all the required details, it is time to submit the form.
3. Submit All Related Documents
All the documents required by the insurance provider shall be shared to continue the claim process. The documents necessary for the claim will depend upon the nature of the death undergone. These documents usually comprise the original or a certified copy of a death certificate, policy document, medical records related to the cause of death, and other related documents.
Other documentation that may be needed is a police report or a post-mortem report in cases of unnatural death. Each document will help support your claim and give the insurance provider all the necessary information for processing and evaluating it.
4. Examine the Claim Request
Once the insurance company receives all documents, it will start evaluating and analyzing them. The company will verify all the documents submitted, which might include medical reports, police records, or any other necessary documents.
For instance, if the policyholder dies within three years of buying the policy, then the time for detailed investigation may be required. If approved, then the insurance company will pay out its death benefit. If otherwise, it will state a reason for such rejection.
5. Settle the Claim
The insurance company will settle the claim amount, either in lump sum or instalments, according to the terms and conditions, after acceptance of the claim. It will be deposited directly into the beneficiary’s bank account. In addition, they should be aware of the tax implications of a death benefit received, which might differ due to local laws.
What are the Rejection Causes of Life Insurance Claims?
When applying for a life insurance plan, you and your family members must be aware of common mistakes that can result in a denied claim. Following are the plethora of reasons that an insurance claim may not be granted:
- Wrong information
- Contradicting information
- Delay in premium payment
- No mention of the nominee of the beneficiary
- Undisclosed previous/existing insurance policies
- Undisclosed medical records
- Lapsed Policy
Final Words
Knowing and understanding the claim process of life insurance death benefits can help your family navigate the process easily during the time of loss. It will ensure they can easily fulfil the requirements and procedures for a smooth claim settlement process. Moreover, your family will not have to strive hard to earn a living for their daily expenses.