Securing your family’s future with a term insurance plan is one of the best ways. Term insurance plans have affordable premium rates and offer death benefits to your loved ones after your demise. However, the question arises of whether it offers accidental death coverage. Hence, in this article, you’ll learn whether term insurance provides accidental death benefits and how to file a claim for accidental death.
Does Term Insurance Offers Accidental Death Benefits?
As life uncertainties make us vulnerable to death for multiple reasons, term insurance offers accidental death benefits to ensure your family is financially secure. If you meet with an accident that results in demise, your family can file a claim to receive death benefits from the insurance company.
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Moreover, with an accidental death benefit rider in your plan, you can increase the coverage and widen the life insurance policy’s scope. Although you must pay an extra premium to receive the extensive coverage, it is quite affordable compared to its benefits. You can also use a term insurance premium calculator to determine the amount you must pay to receive the benefits.
How Does Accidental Death Benefit Work?
Many insurance providers in India offer this affordable accidental death benefit rider. Including this rider is an extra boost to your existing plan. With this robust plan, you can ensure your family is financially protected if anything happens to you. For instance, if you have a term insurance plan of ? 50 lakhs and include an accidental death benefit rider of ? 15 lakhs, your family will receive ? 65 lakhs as the sum assured in case of your accidental death.
However, if you do not opt for an accidental death benefit rider, your family will receive ? 50 lakhs as the sum assured upon your accidental death. Hence, the rider makes your policy extensive and does not take anything from you.
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Steps to File a Term Insurance Claim After Accidental Death
Understanding the claiming process of the term insurance after accidental death is beneficial for streamlining the process. Here is a detailed step-by-step guide you can follow to file a term insurance claim for accidental death:
1. Notify the Insurance Company
It is the first step your family has to take to claim an accidental death benefit. They must inform the insurer about the policyholder’s demise through customer service number, email or by visiting the branch.
2. Fill Out the Form
After that, your family members must fill out the claim form with proper details, such as name, age, reason of death and other information required by the insurance company. They must keep all the documents ready to ease the filing process of an accidental death.
However, if no nominee has been declared, the claimant shall provide proof that they can legally receive the death benefit. After filling in all the required details, it is time to submit the form.
3. Submit the Related Documents
The beneficiary must provide the insurance provider with all necessary documents to continue the claim process. These may include the original or certified copy of the death certificate, policy document, medical records related to the cause of death, and other relevant documents.
In addition, the insurance company may ask for additional documents, such as a police report or post-mortem report for accidental death. Each document supports the claim and provides essential information for processing and evaluating it.
4. Process of Claim Request
Once all documents are received, the insurance company will evaluate them and verify the information.
For instance, if the policyholder dies within 3 years of buying the policy, the insurance company may opt for a detailed investigation. If approved, the insurance company will pay out the death benefit; if rejected, a reason for the rejection will be provided.
5. Settle the Claim Request
Once the claim is approved, the insurance company will settle the claim amount, either in lump sum or instalments, as per the terms and conditions. The payment will be directly deposited into the beneficiary’s bank account. Moreover, beneficiaries must consider the tax implications of the death benefit received, which may vary based on local laws.
Final Words
Overall, term insurance typically covers accidental death, providing financial protection for the policyholder’s beneficiaries in the event of an untimely death due to an accident. Hence, it is essential for you and your family members to carefully review the terms and conditions of their policy to ensure that accidental death is indeed covered, as specific exclusions may apply.