Buying a Life Insurance is not enough if no one knows how to claim it. Death Claims are the claims made by the dependants (say family members) of the Insured, to obtain the benefit of such policy. A Life Insurance policy doesn’t reap compensation for the death of the insured on its own. It has to be claimed by the nominees mentioned in the Insurance policy.
Death is inevitable and so we have always heard. But nonetheless, it has a lot of consequences for those who remain alive, mainly the family members of the deceased. The emotional aspect is beyond one’s control but any person, while living, would want to safeguard their family to the best extent possible, making such arrangements that ensure adequate financial security for the family after their death. Due to the conditions in India and the average income of the average citizen, it is not possible for most of the people to save sufficient funds to ensure a complete financial security for their family in case of their death. Here comes in the role of a Life Insurance. It provides a cover which undertakes to pay a certain lump sum amount to the dependants of the insured, upon his/her death during the term of such policy. But this amount has to be claimed by the family of the deceased after his/her death.
Considering the trauma which the potential claimants suffer in the aftermath of the death of the insured, the process to make Death Claims has been kept simple enough. There is a well-defined and convenient procedure laid down for the claimants to follow and it is as follows:
- Information about the Company.
Usually, deaths under Life Insurance Policies are split into two broad categories, namely:
- Early Deaths – When the policyholder dies within 3 years from the date of the policy.
- Non-early Deaths – When the policyholder dies after 3 years.
In LIC, the second category takes up a smoother course where the Death claims on non-early deaths are settled within 30 days from the receipt of all the requisite documents (discussed ahead). This is because, under the general notion, there exists a scope of cheating and fraud in cases of early deaths. Hence, to protect themselves, the insurance providers usually take a bit longer in such situations to completely ascertain the credibility of the claim.
- Claim Intimation Form.
This can be obtained online also, from the website of the company too. However, it is crucial for most companies that a hard copy of this form be received physically by the Insurance Provider.
- Submission of requisite documents.
As common sense dictates, proper documents are required for an insurance provider to process the death claim. This is the list of necessary documents:
- Policy documents (Original)
- Death Certificate
- Proof of Age of the Insured
- Medical Certificate (for proof regarding cause of death)
- ID proof of the Beneficiary
- An executed Discharge form (signed by the Witness)
- Cases of unnatural deaths – Copy of FIR & Post-mortem report
- Cases of death due to illness – Hospital records/certificate
- Cases of early death – Cremation certificate and Employer certificate
It is always safe to discuss the claim and its requirements with the insurer to be safe as it is possible that this set of required documents gets modified/updated. See? The process is quite hassled free!
Death can’t be avoided but it is possible to be smart about it. Don’t leave your families in a financial uncertainty, especially if they’re counting on you for all their expenses. Make a smart choice, get a smart life insurance and educate your family how to claim the cover when you leave for your heavenly abode.