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Definition of Life Insurance
Life Insurance: According to Investopedia, life insurance itself is a contract between an insurance company and a policyholder in which the company guarantees a sum of money to the heirs when the name of the insured on the insurance dies.
The insurance company promises death coverage in accordance with the amount of premium paid by the policyholder per month.
Later, this sum assured can be used as capital for the recipient to continue living and pay all the debts of the insured.
What is meant by a Life Insurance claim?
A life insurance claim is a type of insurance policy where the insured person dies before the end of the term of the policy. In case of death, the insurer pays the beneficiary the amount specified in the policy. If the insured person survives beyond the term of the policy, then he/she gets the benefit of the policy.
Benefits of life insurance claims
There are many reasons why people opt for life insurance claims. Here are some of them:
- You have children who need financial assistance after your death.
- You want to provide for your family financially if something happens to you.
- You want your spouse to receive the money in case of your death.
- Your employer offers life insurance policies to its employees.
- You want someone to take care of your parents or grandparents in their old age.
- You want a lump sum payment instead of monthly payments.
Types of life insurance claims
The following are the types of life insurance claims:
- Term insurance claims
- Whole life insurance claims
- Universal life insurance claims
Today there are still many people who do not know how to apply for reimbursement for insurance, not to mention the matter of submitting a life insurance claim.
Of course, there are steps you must follow to get insurance coverage.
Come on, find out how to easily receive a life insurance claim in the following Glints article.
4 Steps to Submit a Life Insurance Claim
Payment of claims for life insurance coverage is the obligation of all insurance companies.
The heir whose name is listed on the insurance has the right to file the claim. So, don’t hesitate to ask for the sum assured which is already the right of the insured family.
The procedure for submitting a claim is relatively easy, especially since most companies have explained the procedure on their official website. However, there are still some people who do not fully understand the steps to filing a life insurance claim.
The following are 4 ways to collect life insurance claims that are already the rights of the insured family:
1. Contact the insurance company
To contact the insurance, the family must be represented by an heir whose name is registered in the insured’s insurance.
The heirs must report to the insurance company that the insured has died.
This process will be supported by documents such as the insured’s death certificate as well as insurance policy documents.
The death certificate itself explains the time, place, and cause of death of the insured. This letter can be obtained at the hospital where the insured is being treated or at the local government agency.
Always remember that a death certificate is the most important step in filing a life insurance claim as proof of the death of the insured.
2. Interview with the insurance company
After receiving the documents from the heirs, the company will then contact him for an interview process.
The insurance company will ask the truth about the death of the insured.
In addition, they will also ensure that all insurance policy documents and policy status have been submitted to the heirs listed on the insurance.
This process does not take much time and can be done online. Therefore, there is no need to worry if you have to submit a claim amid this pandemic.
3. Insurance claim form
If the interview process goes well, the company will send a life insurance claim form.
The heirs must fill it in and immediately send it back to the insurance company to be checked for validity.
Here are 6 documents that must be included on the insurance claim form:
- Original policy and endorsement
- Photocopy of all laboratory and radiological examination results
- Photocopy of ID card or identity of the recipient of the sum assured
- Death certificate from the doctor/hospital, which contains the cause of death of the insured
- Death certificate from the local government
- Original police certificate (BAP) if the insured dies due to an accident
4. Document verification and approval
Documents and forms will then be re-verified by the insurance company.
If it is deemed true and legal, the company will immediately calculate the sum assured that they must give to the heirs.
However, keep in mind that the process of disbursing insurance funds will take a long time. Especially if the heirs’ life insurance claims touch more than Rs.50 lakhs.
That’s the explanation of the four steps you can follow to file a life insurance claim. Take it easy, it is the right of the heirs to apply for insurance coverage.
So that it can run smoothly, follow the steps applied above, yes. You still find a lot of other info about insurance on the LocalFeed Blog, you know!