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Life Insurance Claims Process Flow Chart

Life insurance claims- requires the submission of a claim form accompanied by a death certificate. The process, especially when claims involve high face amounts, may requires in-depth examination by a carrier to ensure that the death of the covered individual did not fall under any exclusion contained in the contract, such as suicide or death resulting from a criminal act. “Life insurance claims” Generally, the process takes about 30 to 60 days without extenuating circumstances, affording beneficiaries the financial wherewithal to replace the income of the deceased or simply cover the burden of final expenses.

There are two types of life claims—on maturity of the policy and on demise of the policyholder. The maturity claim is made by the policyholder, while the claim on death is done by the nominee or dependents of the policyholder Life insurance claims.

Formalities for a death claim

When a person with a life insurance policy – called a life assured – dies, a claim intimation should be sent to the insurance company as early as possible. The assignee or nominee under the policy can do this. So can any close relative or the agent who handles the policy.

The claim intimation should contain information like the date, place and cause of death. The insurance agent has the duty to help the life assured’s family/ assignee to deal with the insurance company to fulfil the formalities for a claim.

The insurance company will respond to this intimation and will ask for the following documents:

  • Filled-up claim form (provided by the insurance company)
  • Certificate of death
  • Policy document
  • Deeds of assignments/ re-assignments if any
  • Form of discharge executed and witnessed.

Claim on maturity

The policyholder has to sign the discharge voucher in the presence of witnesses and send it back to the insurance company along with the original policy bond, to enable it to make the payment. If the policy has been assigned in favour of any other person or entity—like a housing loan company—the claim amount will be paid only to the assignee who will give the discharge.

When a life insurance claims policy is about to mature, the insurance company usually informs the policyholder at least 2-3 months in advance, giving her details of the date of maturity, maturity amount, along with the discharge voucher which is like a receipt.

Document Checklist Life Claims

Generally, a death claim would require these documents:

  • The death certificate
  • Original policy documents
  • ID proof of the beneficiary
  • Age proof of insurer
  • Discharge form (executed and witnessed)
  • Medical certificate (as proof of cause of death)
  • Police FIR (in case of unnatural death)
  • Post-mortem report (in case of unnatural death)
  • Hospital records/certificate (if the deceased died due to an illness)
  • Cremation certificate and employer certificate (in case of early death)
  • As a claimant, you should make the insurance claim immediately following the death of the insured. Ensure that you have all the necessary documents with you too.
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