Key Considerations While Filing an Insurance Claim for the First Time
Upon the demise of the policyholder, their chosen beneficiary can make a formal application to the insurance company in order to claim their benefit from the policy. The insurance claim can be used to pay daily expenses and provide financial relief through a difficult time. This blog will help you understand the life insurance claim process, and different types of policies will help you to apply for one easily.
Types of Life Insurance Claims
Here are the types of claims you need to apply for. Each type of claim works a bit differently. So, here’s what you need to know about each one:
- Death Claims
- A death claim is made after the unfortunate demise of the policyholder.
- The family needs to send the insurance company a claim form with the death certificate attached and provide any other required documents.
- Maturity Claims
- Maturity claims happen when a life insurance policy is approaching its end date and the policyholder is still alive.
- At this point, they can apply for the claim that was promised.
- It’s necessary to fill this claim on time so there’s no delay in getting the money.
- Rider Claims
- Rider claims are for extra benefits included in the main policy, such as coverage for accidents or serious illnesses.
- To make a rider claim, you’ll need to provide extra documents, like medical reports or accident records.
The Life Insurance Step-by-Step Insurance Claim Process
Filing a life insurance claim can seem complicated. With a few simple steps, you can make sure everything goes smoothly. Here’s a clear guide to help you through the process from start to finish.
Step 1: Inform Your Insurance Provider
After the policyholder’s demise, the beneficiary should inform the insurance company as soon as possible. This will initiate the claim process. Essential details required for the life insurance claims include the policy number, death details, and the insured’s and nominee’s names.
Step 2: Collect All Important Papers
Next, you need to collect all the important documents. These usually include:
- The original policy paper
- The death certificate
- The claim form
- ID proofs
- Employer certificate that the deceased’s employer filled
There might be other documents that can be required for different insurance providers.
Step 3: Submit the Claim
After gathering the papers, you need to send them to the insurance company with the claim form.
You can:
- Submit online through their website.
- Visit their office to hand in the documents.
- Keep copies of everything you send, just in case you need them later.
Step 4: Check on Your Claim
After sending your claim, it’s important to keep track of it, you can:
- Check the status online if the company offers tracking tools.
- Call the insurance company to ask about the progress.
Regularly checking helps ensure your claim is moving forward. It also helps fix any problems that come up.
Things to Not Do When Filing an Insurance Claim
When you’re filing a life insurance claim, avoiding common mistakes is important. To help things go smoothly, here’s what you shouldn’t do. Keep these tips in mind to make the process easier:
- Incomplete Application
- Make sure you fill out the claim form completely.
- Double-check everything before you submit it.
- Missing or wrong information can delay the process or even cause your claim to be rejected.
- Delaying the Claim Submission
- Take your time filling the claim.
- The earlier you send it after the event, the smoother the insurance claim process will be.
- It can be a long process and result in your claim being denied.
- Failure to Update Nominee Information
- Always keep your nominee details up to date.
- If the nominee’s information needs to be updated or corrected, it can cause issues when you file a claim or delay the payment to your family.
- Ignoring Policy Exclusions
- Always be certain of what your policy terms are and what isn’t covered.
- Filling a claim for something not covered might lead to frustration.
- Understanding your policy can save you time and prevent the last-minute confusion.
- Submitting False Information
- Always be honest when filing your claim.
- If you provide false or misleading information, it could lead to your claim being rejected or even cause legal trouble.
- It’s necessary to be honest and not make mistakes.
Ensuring a Hassle-Free Life Insurance Claim
Be prepared when you file your life insurance claim. Collecting all the necessary paperwork and knowing how the claim is processed can help speed up the process of your claim being processed. Ensure to select an insurance company that has a reputation for disposing of claims seamlessly.
This also indicates that the insurance claims are managed efficiently. Thus, the reliability is way better in the case of insurance providers like Canara HSBC Life Insurance, which has a claim settlement ratio of 99.23% for FY 2023-24.
Take action now so that your family will be financially protected for years to come.