Death Claims on Life Insurance: A Complete Guide

10-June-2021 |

There's no good way to put this, but death is inevitable. Therefore, one should not be afraid of it; instead, they should prepare for it. The departure of a loved one emotionally and mentally affects the family. Sometimes, the individual's family may also suffer financially, so people choose term insurance and life insurance, which provide death benefits to prevent the bereaved from financial loss.

But what after your departure? What if your family is unaware of the death claim? Here is a comprehensive guide to death claims on life insurance. 

 

What are life insurance and term insurance?

A life insurance policy is a contract between the policyholder and the insurance company. The individual pays a certain amount of insurance premium to the company, and in turn, the company will provide a lump sum amount, to the individual's family, after his/her demise. One can also modify Life insurance policies to suit their lifestyle. Sometimes, the life insurance policy also ensures guaranteed# returns on the invested amount.

Term insurance is the most distilled form of life insurance. They offer no other benefits apart from death claims. The procedure is very similar; the individual pays term insurance premium, and the company guarantees# to pay the amount to their family members.

 

What is a death claim?

A death claim is an official request made by the nominees of the life insurance policy. The nominee asks for the payment of the Life cover amount in case of the insured's demise. The beneficiaries use the death claim amount to ease the financial burden. The amount can even be used to pay for your children's education or take care of the expenses of your dependent parents.

 

What is meant by beneficiary/nominee?

The person or the entity that is to receive the money after the demise of the insured is known as the nominee or beneficiary. The beneficiaries have been divided into few types-


  • Primary beneficiary: The primary beneficiary is the first choice of the insured to receive the benefits. Depending on the type of life insurance policy, the policyholder can even select multiple beneficiaries.

  • Preferred beneficiary: Preferred beneficiaries are the nominees that the insurance company recommends. They can either be a parent, spouse, child or grandchild.

  • Contingent beneficiary: If the primary beneficiary dies at the same time as the policyholder, then the amount goes to the contingent beneficiary. If there is no contingent beneficiary, then the amount goes to the estate.

 
Documents required to start the death claim procedure


 

 

  • Original Policy documents

  • ID proof of the nominee

  • Death certificate of the policyholder

  • Age proof of the insurer

  • Medical certificate

  • Discharge forms

  • Hospital records

  • Cremation certificate

 

If the individual had an unnatural death, then the nominee or the beneficiary will have to furnish some extra documents, such as-

 
  • Postmortem report

  • Police FIR

 

In case of accidental death, one can file the accidental Death Claim with the insurance companies. You will have to submit the below documents-

 
  • Complete accidental death benefit claim form

  • Death certificate

  • Police FIR copy

  • A document containing the information regarding the date, location, and the circumstance of the accident.

 

Nominees should not wait too long after the death of the policyholder to make a death claim. Ensure to ready the documents mentioned above. Make a point to ask our insurance companies for the updated checklist for the documents. But make sure that you have all the important one's ready.

 
How to make a death claim?

 
  1. The most important step of this procedure is to inform the insurance company of the death of the insured person. This will allow the company to begin their processes.

  2. The death of the person is then categorised. The two categories are "early death" and "non-early death". The classification depends on the period between the beginning of the insurance policy and the death of the insurer.

  3. After the company starts their due process, it will provide you with a claim intimation form.

  4. Do not forget to ask about the documents which are required.

  5. If you bought the insurance online, apply for the death claim form on the same website.

 

Term insurance vs life insurance death claims


Nowadays, the life insurance policy has become a multipurpose financial tool. The premium paid towards it is utilised for investments and to assure death benefits as well. The plan also assures guaranteed# returns. The term plan has not changed that much. The term insurance premium is still only utilised to guarantee the protection of your beneficiary in case of unforeseen events. 

 

Tata AIA Life Term Insurance Plans

The process to buy term insurance has been simplified. With a seamless buying journey and quick renewal, Tata AIA allows you to choose your term plan from the comfort of your home. The death claim application can also be filed online by the beneficiary.

After the application has been approved, the death claim settlement amount will go directly to the account of the beneficiary. The beneficiary will be given two options. Either they can get a lump sum amount, or the amount will be paid out to them in regular intervals over a certain period. 

 

Conclusion

Term insurance is mostly bought as a safety net to help your family steer any circumstance, in your absence, without having to worry about the money. One can only know the benefits of term insurance during an economic crisis or when one is faced with an immense financial burden. The death claim settlement makes things financially bearable for the family of the policyholder.

Check out Tata AIA Life Insurance term plans online and choose the right coverage to secure your family’s financial future. You can determine the exact premium amount with our online term insurance premium calculators.

If you need any help regarding our claim settlement, get in touch with our experts today!

 

L&C/Advt/2021/Jun/0827

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Disclaimer
  • #Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry
  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.