Know What Documents Are Required While Filing A Term Insurance Claim

A term insurance policy guarantees that, even without you, your family will be able to maintain their standard of living and accomplish their objectives in life. It can take care of debts and other costs, preventing the need for your dependents to sell other investments to cover expenditures incurred as a result of a lack of income. By making a small premium payment with a term life insurance policy, you may secure appropriate insurance coverage (sum assured).

Because the insured receives only a death benefit and no maturity benefit, term insurance premiums are cost-effective. Unless you get a term plan with a return of premium benefit, that is.

How does Term Insurance Work?

Only the nominee receives a death payment from term insurance in the event that the life guaranteed passes away. To satisfy the demands of people with various aspirations, there exist term plans with a variety of characteristics.

Increasing Term Insurance

In this case, the sum assured amount grows yearly but the premium stays the same.

Term Insurance with Return of Premium

This is the ideal insurance for you if you wish to receive your term life premium back at maturity (after deducting any relevant taxes and fees). The premiums for an ROP option, however, are a little on the expensive side.

How much Term Insurance you need ?

If you want your term insurance to take care of your family in times of need, you must get enough coverage or amount assured. You may use a term insurance calculator to calculate an estimate while taking into account several criteria including age, monthly costs, current income, existing liabilities, and life objectives. Your life objectives change over time, too, so you need to adjust your preparation accordingly.

It is crucial for you to provide the necessary paperwork as soon as possible when purchasing term insurance, whether you do so online or in person. This is because you must submit a few documents to fulfill the underwriting requirements. Simply upload the necessary paperwork to the insurer's website if you're purchasing term insurance online. You may also courier the documents to the closest branch or submit the same information to them by email.

List of Documents Required for Term Insurance Claim

The nominee or claimant must provide the following documentation when submitting a term insurance claim for a death benefit for the claim to be approved.

Mandatory Documents Required

- Original policy document(s)
- Death certificate issued by a local municipal authority, original or certified copy
- Death claim application form
- Along with a voided check or the nominee's bank account passbook, submit the NEFT mandate form with the bank's official attestation.
- Photo identification of the nominee, such as a copy of a passport, PAN card, voter identification card, or Aadhar (UID) card.

Additional Documents Required on Basis of Cause of Death

For Medical/Natural death
- Statement of the Attending Physician
- Certificate of Employer

Accidental/Unnatural death
- Police complaint/ FIR or Punchnama
- PMR
- Final Police Investigation Report (if any)

Conclusion

We've been more aware of life's ambiguity thanks to the COVID-19 epidemic, which has also highlighted the value of term insurance protection. Having term insurance protection today is crucial, regardless of whether you are the family's primary provider or have a spouse who works. Their lifestyle and the life objectives you have set for them might both be badly impacted by a reduction in income. Don't wait; get a term insurance coverage immediately to protect their future.