A Step-By-Step Guide To Filing An Insurance Death Claim

Investing in a term insurance policy is a smart move to safeguard your family’s financial future. However, simply purchasing term life insurance is not enough. There have been countless scenarios where the family of the insured had to struggle to get the life insurance death claim. 

Often, this was due to a low life insurance claim settlement ratio or insufficient information on the part of the beneficiaries. 

Nobody would want their loved ones stuck in a dreadful claims process during an already tough emotional time. To ensure this, you must research the insurer’s settlement ratio while also guiding your family through the life insurance claim process. 

In this article, we aim to lend a helping hand by walking you through the claim process for term life insurance. This article explains each aspect in detail, from death benefits to a step-by-step guide on filing a death claim. 

What Is A Death Claim ?

Let’s start with the basics– what exactly is a death claim? When an insurance policyholder passes away, the beneficiaries of the deceased are entitled to a specific predetermined sum.  When the family members request the insurance company for this payout, it is called a death claim or life insurance policy payout. Reputed insurance houses typically have a seamless and straightforward death benefit claim process. 

However, if family members are unaware of the process or the specifics of the policy held by the deceased, it can cause some complications. Hence, it is advised to inform your beneficiaries of the insurance’s specifics and claim process. 

Types Of Death Benefits

Life insurance companies promise the payout of a specific sum in case of the policyholder’s unfortunate passing. 

 The death benefits a family is promised usually fall under these 4 categories: 

1. Natural death  

If the policyholder passes away through old age or some illness, then his death comes under the natural death claim category. In such cases, the payout process is easy, as the essential documents are the death certificate and hospital records as proof.  

2. Accidental death 

In case the policyholder passes away from an unfortunate accident, then his death comes under the accidental death claim category. Usually, term life insurance benefits include unintentional deaths. 

3. Homicidal death 

If another individual’s criminal activity influences the death of a policyholder, then the claim will be categorised under the homicidal death claim. Payouts in such scenarios may also require a police FIR as a mandatory document. However, you should note that if a nominee is suspected of being involved in the homicide, the insurance company may withhold the benefits until the charges are cleared. 

4. Suicidal death 

Typically, suicidal deaths are not covered under life insurance policies. Some plans may cover the suicide deaths also, but they come at a very high premium.

Top Reasons For Death Claim Rejections

Not all death claims are processed by an insurance company. There are instances when your insurer may reject your life insurance claims due to the following reasons:

1. False information

False information is one of the most common reasons for a life insurance claim rejection. When a policyholder applies for life insurance, they must accurately provide all the required details in the application form. If they provide incorrect details or do not disclose specific information, their claim might get rejected later on.  

2. Non-payment of premiums

Another reason for a death claim rejection will be due to a policy lapse. There may be times when you fail to pay your premiums. It can be either due to a lack of funds or overlooked deadlines.  Your insurance shall be marked as a lapsed policy if premiums remain unpaid beyond the grace period. Any death claim made for this policy will be rejected.  

3. No nominee details

The government guidelines require adding a nominee for all your insurance policies. Usually, the insurance amount is passed on to the next kin of the policyholder. However, if there is no explicit mention of the heir, it can pose significant challenges for them to prove their legitimacy. In some cases, it may even lead to rejections. 

4. Denied medical tests

During the application process, the policyholder is made to go through a selection of medical tests. This is usually done to gauge your risk profile and create an appropriate premium amount. However, if you deny taking specific medical tests or refuse to disclose the results, it can cause significant problems during the claim process. 

So, how do you ensure your beneficiaries do not face rejection? Simple. You just need to ensure that: 

• All information provided by you at the time of purchase is correct.
• You pay all your premiums on time.
• You mention a nominee to receive the benefits of your insurance.
• You perform all your medical tests as required.
• In case of any changes in medical status, lifestyle habits or nominee should be informed to the insurer.

How To File A Death Claim ?

To file an insurance claim after the death of the policyholder, you must follow these steps:  

1. Notify the insurance company 

Your first step should be to inform the insurance company about the policyholder’s passing. You can visit the nearest branch or call them on the customer service number. If the policyholder has died within the first 3 years of purchasing the insurance, it will be categorised as an ‘early death’; otherwise, it will be called a ‘non-early death’.  

2. Submit documents 

Once you reach out to the insurance company, they will instruct you about the required documents for the claim. While the specific requirements may differ based on the type of death claim, you may be asked to provide the following documents:

• Death certificate
• Policy documents (Original)
• Beneficiary’s ID proof
• Insurer’s age-proof
• Discharge form
• Medical certificate
• Police FIR (Only in unnatural deaths)
• Postmortem report (Only in unnatural deaths)
• Hospital records
• Cremation certificate 

3. Complete and submit the claim form

Next, you will be asked to fill out the death claim form. In some cases, the form can be filled out and submitted online. 

4. Receive death benefit 

Finally, once your documents are verified, the death claim will be approved, and you shall receive the insured sum. You can access funds as a lump sum or through annual or monthly payments. 

Key Takeaways

To ensure your family can easily access the insurance benefit after your demise, it is advised to communicate the policy terms and claim process beforehand. With a proper understanding of submitting life insurance claims, you can save them from substantial stress during difficult times. Additionally, you can consider platforms like PhonePe for a seamless and hassle-free insurance purchase experience.