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Yogi Zone

Useful articles for your finance management by our team of experts

Claim Settlement Process of Life Insurance Policies

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Life Insurance is a crucial tool used to secure the future of our families in case of any unforeseen events. However, in most of the cases, families do not even know that there was a life insurance policy purchased for their future. So, the first step would be to inform them right away about all insurance policies and investments made. Does it end here? No. There is a process in place to claim the insurance amount in case of your death. Let us see how the family needs to go about in such circumstances.

Documents Needed

Primarily, there are few documents which the family needs to produce before the life insurance company. This list could be handy:

  • Death Certificate
  • Original policy document
  • Id and address proof of the claimant
  • Medical Certificates from Hospitals (if any)
  • Employer Certificate
  • FIR in case of un-natural death
  • Claim request form

Claim Settlement Process

1) Informing the Company

The life insurance company needs to be informed about the death of the life assured. A claim request form needs to be submitted to them at the earliest in order to initiate the process of claim settlement. Usually, companies make available these forms online.

2) Company sends a letter

Once the life insurance company receives the claim request form, it sends out a letter to you asking for required documents. The family needs to keep the above given list of documents along with any other ones that the company requests for.

3) Claim Settlement

Once the documents are received by the company, it needs to settle the claim within 30 days. There are cases where the death could be suspicious and the company might seek investigation which needs to be done within 6 months. Finally, the company makes a decision whether to accept the claim or reject it. If rejected, it needs to state the reason for rejection. The most common cause for rejection is non-disclosure or non-fulfilment of terms and conditions. This is the point where hiding of pre-existing diseases or any other material facts comes into play.

Final Word

The process may not always be easy for the family especially in emotional circumstances. Hence, the above points may be useful for them to be prepared to claim life insurance. Also, make sure that whatever you state at the time of policy documentation will impact the final claim settlement amount which could be very crucial for the family.

  • http://beaconlifefunds.com/ David – Beaconlifefunds.com

    It would takes months to get it done if I am not mistaken. That is not including the investigation of a life insurance company. Now I do not believe a life insurance is a fund for burial in this case. How could we wait for months to bury a body? That is unbelievable. Unless there is some life insurance that will give you your burial funds without any paper work.

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