In order for term insurance claims to be settled efficiently, policyholders and beneficiaries frequently have to overcome challenges. Although the insurance company has the final say in how claims are resolved, policyholders can also play a role in streamlining and accelerating the process.
You can follow these straightforward suggestions to ensure a smooth and speedy claim settlement procedure:
- Prevent ambiguity
When filling out your insurance form, always be truthful, provide precise information, and never omit any important information. Cross-check your work after completing all the specifics to ensure there are no ambiguities or mistakes. Be honest about any current or prior medical concerns and lifestyle choices, including drinking, smoking, and other vices. Don’t let your insurance agent fill out the policy application form on your behalf; instead, always fill it out yourself. The tiniest error or false statement on the insurance policy application form can significantly impact how term insurance claim settlement is handled.
- Know your policy well
It is crucial to carefully study the term insurance policy document. This will familiarise you with the procedures and requirements for filing claims in addition to giving you a thorough understanding of its characteristics, clauses, inclusions, and exclusions. Make use of a term insurance calculator to calculate your premium costs. Additionally, it is essential to be aware of the beneficiary’s rights and the available dispute resolution options.
- Stay updated regularly
After purchasing an insurance policy, it is crucial to maintain it updated frequently (if necessary) so that it represents the most recent information, such as altered contact information, addresses, names, etc. As soon as the beneficiary changes, be careful to inform your insurance provider. Keep records of all the policy’s modifications and additions. This will make it simple for the insurance provider to get in touch with you and ensure that you don’t have any difficulties both before and after the claim settlement process.
- Understand the claims settlement procedures
All family members, including you as the policyholder, must be aware of the claim settlement procedure, including all necessary paperwork, formalities, and other criteria. When the time comes, having everything ready in advance will help the claim settlement process go more smoothly.
- Educate the beneficiary
You must educate the beneficiary as well after you get a thorough understanding of the insurance policy and the term insurance claim settlement process. The beneficiary is responsible for fully comprehending the terms of the policy, as well as its conditions, exclusions, and assured sum.
The location of the policy papers should also be known to the beneficiary. To ensure that the beneficiary can easily locate them when needed, it is essential to classify them and give them the proper labels.
- Ensure timely intimation
You must submit an application to the insurance provider before making a claim in order for them to start the claim settlement procedure. The most recent claim intimation form is available for download from the insurer’s website, and if there isn’t an online option, you’ll need to pick one up in person from the insurance company’s office.
- Have documents handy
Keep copies of your insurance policies and paperwork pertaining to claims structured, secure, and readily available. When filing a claim, do so much in advance because paperwork that is submitted at the last minute presents issues and delays. During the claim filing procedure, it is unpleasant and time-consuming if any documents are lost. Make sure the documentation is submitted according to the type of life insurance claim being made—demise, maturity, or rider—as well.
According to the insurance provider you are working with, additional documents can be required in addition to the standard policy documents, age verification, and policyholder’s death certificate. A smooth claim settlement process is ensured by having complete knowledge of the paperwork needed.
- Consider timely action
Insurance providers are required by the IRDA to resolve claims within 30 days of obtaining all required paperwork. The insurer’s requirements must be completed within six months of receiving the written notification. If all goes according to plan, the claim is delivered to the policyholder within the stipulated 30 days, typically via Electronic Fund Transfer (EFT) these days. Visit the official website of IRDAI for further details.
- Sign up for an e-Insurance Account
Choosing an electronic insurance account is a smart move because it reduces paperwork, keeps your policy documentation and information organised, and provides 24/7 access. With online assurance, you can manage your policy effectively and even use a term insurance calculator to calculate all necessary costs.
By strictly adhering to the aforementioned advice, you can ensure that the term insurance claim process runs without a hitch. In light of this, you should think about obtaining a term insurance plan if you haven’t already. But keep in mind, before buying a term insurance plan, always use a term insurance calculator to figure out the price you must pay.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.