Term Insurance Claims Process: What Salaried Individuals Need to Know

Term insurance is meant to protect your loved ones from life’s unpredictability, which becomes even more necessary if you’re a salaried individual and they are dependent on you for their finances. In the simplest sense, a term insurance policy offers them a fixed amount of money in the case of your unfortunate demise during the policy period. This financial backbone can be used to meet long-term goals and daily expenses, pay off outstanding loans, and maintain a comfortable lifestyle.

To make sure your family receives this financial support without any hassles, it’s imperative for you to take them through the term insurance claims process. Since you won’t be present when the claim is made, it’s crucial for your loved ones to thoroughly understand each and every step so there’s no chance of any disputes or rejections.

In this article, we’ll discuss the term insurance claims process in detail.

Term Insurance Claims Process

Here is a quick guide to the claim settlement process in term insurance -

Step 1: Informing the Insurance Company

The very first thing your nominee will need to do is intimate the insurer about your demise and their intention of making a claim. They can do this by visiting the insurer’s office or contacting them by phone, email, or website. Once this is done, the claim settlement process begins.

Step 2: Claim Form Filling & Document Submission

Next, your nominee will need to submit relevant documents and a duly filled claims form. This form will be available at the insurer’s physical branch office or on their website. Please keep in mind that the form, along with the needed documents, can vary across insurers.

Note: When your nominee submits the documents, they should get a system-generated acknowledgement of receipt from the insurer. And your nominee should scan the documents and keep copies for future needs.

Step 3: Additional Documents Submission

The insurer may request additional documents from your nominee to support the claim they’ve made. Your nominee should ensure these documents are submitted as soon as possible to avoid any disputes or delays in settling the claim.

Step 4: Approval of the Claim and Payout

Once all the documents are submitted, the insurer will check and evaluate them. They will then decide whether to approve or deny the claim. If they find everything in order, your nominee’s claim will be approved and the claim amount will be paid to them as per the claim payout option you’ve chosen.

Documents Needed for a Term Insurance Claim

Here is a general list of the documents your nominee will need to submit when making a claim -

In case of Natural Death

• Policy certificate - original copy
• Death certificate copy issued by local authorities
• Your nominee’s address proof
• A photo identity proof
• Cancelled cheque
• Bank passbook copy
• Medico-legal cause of death copy
• Health records including test reports, admission notes, discharge or death summary, etc.

In case of Unnatural Death

• Policy certificate - original copy
• Death certificate copy issued by local authorities
• Your nominee’s address proof
• A photo identity proof
• Cancelled cheque
• Bank passbook copy
• Medico-legal cause of death copy
• Health records including test reports, admission notes, discharge or death summary, etc.
• FIR copy
• Panchanama
• Inquest report
• Driving licence
• Postmortem report

Note: This is an indicative list of documents and can vary across insurers.

Navigating the Nuances of Claim Settlements

The term plan claim process can feel a little daunting and complex. You obviously do not want it to result in rejections or disputes, as this will defeat the entire purpose of you buying term insurance in the first place. To make the claim journey smooth and hassle-free from your nominee, take them through the steps and required documentation. Make sure you give them access to the needed documents.

Also, since the process and documents can vary across insurers, ask your insurer about the claim settlement procedure they follow when you buy the policy. Then, gather all the necessary documents and intimate your nominee about everything. Keep the documents in a safe and accessible place, so there’s no confusion and chaos if and when the claim is raised.

As an extra precautionary measure, you can also consider creating a Digilocker account or e-insurance account to store the documents digitally. Then, share the account credentials with your nominee and/or family members.

Best Term Insurance Plans For Salaried Individuals!

ABSLI Salaried Term Plan [UIN: 109N141V01] This comprehensive plan is specifically designed for salaried individuals. It offers you the flexibility to tailor the plan that meets your needs. It ensures that you create a strong financial shield for your loved ones, whether it’s for educational expenses, maintaining their lifestyle, or keeping up with their everyday needs in your absence.

Key Features

• 4 plan options for your unique needs and preferences.
• Life insurance coverage up to the age of 70.
• Various death benefit payout options, like lump-sum or monthly income.
• Extra protection with the built-in terminal illness benefit.

Wrapping Up!

The claim settlement process is undoubtedly the most important part of the term insurance journey, but your nominee will have to face it alone. You won’t be around to support them and so, it’s super important to take them through all the steps and nuances, so they can have a seamless experience and financially secure future.