Life Insurance Policy and Procedures to Make a Successful Claim

Getting a life insurance might be a bit easy but that’s not the case with making a claim successfully. Submitting different documents and completing several legal formalities might be an exhausting experience for an unprepared claimant. Along with getting a life insurance plan easily, this article talks about important life insurance clauses as well as the right procedure to get a claim successfully.

Life is turning more unpredictable with every passing day. Our irregular lifestyle and unhealthy eating habits are making us more likely to get diagnosed with a disease at an early age. Also, the increasing number of accidents have made us unsure of what could happen with us in the next moment. Cheap life insurance policies for individuals as well as the whole family bring a feeling of safety for the same. These policies are a contract between the insured and the insurer in which the insurer is bound to pay an accumulated cash value if the insured during the policy term or the when the policy gets matured. The insured may need to pay premiums monthly, quarterly, half-yearly or yearly or at any other regular interval.

To provide a suitable life insurance policy for different insurance needs, there are insurers who provide multiple life insurance policy quotes to the insured. Insured can also visit the websites of different insurance providers and get life insurance policy details of the same. Comparing those quotes is always a good idea to understand what each plan is offering and which one best suits the requirements.

After the insured has selected a policy to buy, the next step is getting the life insurance policy. There are different steps for applying a life insurance policy there mentioned below:

Proposal: First of all, the applicant or the proposer has to get the application form an agent or the insurer. This application form contains the information about Name, Age, Address, date of Birth, Profession, family Details and health Status etc.

Medical Examination: To prove their insurability the proposer may need to undergo a medical examination. A health status report is prepared by the doctor and is sent to the insurance provider company and the company calculates the extent of risk on the basis of the provided report.

Proof of Age: The proposer may also need to present a proof of age to ensure the correct age is provided in the application form.

Acceptance of Proposal: After the required documents are submitted and the health report is found satisfactory, the insurer accepts the proposal and the amount of premium is decided.

Payment of Premium: Now, the proposer has to pay the first premium, receives the receipt and the policy for assured cover begins.

Issue of Policy: After the first payment is made, the insurer sends the insurance policy to the insured via registered post which is stamp and dully signed by the authorized authorities.

The tricky part of insurance starts after the insured dies and the beneficiary makes a claim. To get the accepted successfully, the claimant needs to be prepared with the following documents:

Notice of Death: As soon as the insured dies, the claimant is supposed to notify the insurer of the death, date of death and cause of death, along with the policy number attached.

Death Certificate: The claimant or the beneficiary needs to submit a valid death certificate of the deceased insured.

Police Report (in case of an unnatural death): In case, the insured has died an unnatural death, the beneficiary may need to submit a copy of police report as well.

Original Policy: Along with the other required documents, the beneficiary will also have to present the original copy of insurance policy.

Identity Card: To receive the benefits, the claimant will have to prove their relationship with insured through a valid identity card.

Proof of Life: In case, the claimant isn’t named as the nominee, they will have to produce a certificate of title of property of the deceased to receive the benefit successfully.

Payment: Once the legal formalities are done, the claimant receives a discharge form from the insurer. The claimant needs to dully fill and stamp the discharge form and sent back to the insurance provider. After receiving the discharge form, the insurer sends a post-dated cheque to the beneficiary via registered post.

Assignment: Assignment means transferring the liabilities and right to a third person which can be done anytime before the policy matures.

Nomination: The insured needs to nominate their partner of one of their family members to declare who will receive the claim after they die.

Surrender Value: In case, the insured decides to discontinue a policy, they may have to pay a penalty charge called surrender value.

Grace Period: Even after the due date is crossed, different insurers allow the insured to pay their premium within certain days which is called grace period. Usually, an insured gets a 15 days grace period for a monthly premium.

Report this Page