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How to file a life insurance claim

How to file a life insurance claim
September 24, 2021 camsrep

Losing a loved one is always tough, but financial difficulty exacerbates the agony. While most people purchase life insurance to provide for their families after they die, many family members are unaware of the policy and do not file a claim. In this blog, we’ve broken down the steps for filing a life insurance claim.

Step 1: Collect the documents

To register a life insurance claim, you simply need three documents. A certified copy of the death certificate, a copy of the policy documents, and a claim form. The death certificate will serve as proof of death, and the policy documents will have all of the policy’s details. You must fill out the claim form as a nominee, specifying your relationship to the policyholder and how you want to be reimbursed.

Step 2: Submit all documents to the insurance company

Once you have collected all the documents, get in touch with the insurer and inform them of the death. The insurance company will verify that you are the policyholder’s designated beneficiary. During the claim, they may require you to present proof of identity to validate your identity.

Step 3: The insurance company processes the claim

If all your documentation is in order, you should receive your insurance money within a week or so. In some rare cases, it may take around 4 weeks to 8 weeks to receive the claim amount. Insurance companies are usually proactive in settling a claim to avoid interest charges on unpaid death benefits.

You have two options for receiving the insurance payout.

Lump-sum

The insurance company will pay the complete amount at once and you need not any pay tax on it. They will either give the  total amount  as a cheque or they will directly deposit into your account.

Annuity

The insurance company will invest your initial money in an annuity and they will return to you as an annual payment for a set number of years. However, there is an advantage as well as a downside to this. The total annuity amount will be more than your initial investment, but the amount received will be less if the beneficiary dies before collecting all of the instalments.

Reasons why insurance company reject your claim

Suicide:

The insurance company may deny your claim  if the insurance document has a clause indicating that no death benefit will be paid by the company  if the insured commits suicide.

Homicide:

The insurance company would pay any of the beneficiaries the policy holder was killed only when the law declares them innocent .

Misrepresentation:

If the policyholder is a swimmer and died due to drowning, the insurance company may decline the claim. Even if he died in a different way, the insurer can still deny the claim because the policyholder lied about himself. In order to ensure that the information provided by the policyholder is accurate,  the law allows insurance firms with a contestability period of two years . The policy becomes incontestable once the contestability time has ended.

To get the most out of insurance coverage, one must first learn everything there is to know about it. Before filing a claim, carefully analyse the policy or have it reviewed by an expert to guarantee you obtain the full compensation you deserve and that you have appropriate coverage. We advise all policyholders to keep their beneficiaries and family up to date on all of their insurance policies in order to have a smooth claims procedure.

Are the policy documents really safe?

You may have purchased insurance for everything you own, but are you certain that your paper documents are secure? What if you’ve misplaced or damaged them? It is practically difficult to protect your insurance documents against natural damages, theft or loss.

Securing insurance documents digitally comes with multiple benefits like accessing them anywhere, anytime and saving time and effort during claims. The most crucial part of your insurance is to claim it at the right time and get the benefit of it. E-Insurance makes this process simple and easy, especially in emergency situations.

Register for E-Insurance, have them stored securely in a digital vault and access them whenever, wherever you want.

Creating an e-Insurance account takes just a few minutes but comes with lifelong benefits.

Click here to register
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