The Long Read
Everything you *need to know* is right above this. Scroll down, only if you'd still like to read more (honestly, why?)
No, absolutely not. This is a very common myth but it’s not true.
Irrespective of how you have bought your term insurance plan, the claim process is the same.
So, do not worry and buy a term insurance policy, online or offline, depending on your convenience.
Need help understanding whether you should buy a term plan online or offline? Find out what channel you should use to buy a term plan and why.
If you are a nominee or you know a person who’s a nominee on someone’s term policy, you must remember this:
It doesn’t matter whether you buy your term plan online or offline. You have to follow the same set of processes to claim the term insurance payout.
This is how you can file a term insurance claim.
Step 1:
Inform your life insurance company immediately that the life insured has passed away.
If the term policy was purchased from an insurance agent, you can also get help from them.
Step 2:
Fill out the claim form with all the necessary details and submit it.
While it’s a difficult time for you and your family, do remember to fill the form carefully and avoid making any mistakes as it can result in claim rejection.
Step 3:
You have to submit some additional documents like:
Death Certificate of the life insured
Policy documents
Hospital records and discharge form (if applicable)
Postmortem report (if applicable)
Your ID proof
The list of documents may vary from insurer to insurer. It will also depend on what add-ons the term policy has.
So, contact your life insurance company for the exact requirement. Follow this process carefully to avoid claim rejection.
Additionally, here’s something you and your nominee should know that can help with the claim process:
Besides a nominee or an assignee, even a relative can do the claim intimation
After filing the claim, the insurer will accept/reject it in 2 weeks (without any investigation requirement) or 120 days otherwise
Pass on this information to your nominee so they know how to claim your term insurance policy money and receive your life cover without delay.
Good question. Here are some best practices you should follow after buying your term insurance plan to make the best of your policy and help your family:
Read the policy documents carefully and understand the T&Cs and exclusions
Check for any errors in the policy documents. Get them corrected ASAP.
Inform your family and nominees about the policy. Failing to do so can result in financial crisis for them in your absence.
Store your policy documents safely, physically and digitally. Sync up your DigiLocker to access the e-copy anytime you need. Don’t forget to inform your family.
Open an E-Insurance account (eIA) to manage your policies easily online. Share its credentials with your family so they can access these documents anytime, anywhere.
Educate your nominee(s) on how to make a death claim and what to do if the claim gets denied
Make a Will and register it. Mention your nominees and their right to receive the life cover, just as an added precaution.
Pay your premiums on time to avoid a policy lapse. Enable auto-pay with your bank account to ensure this.
Review your life insurance needs regularly so that your term plan can keep up with your changing lifestyle. Use the KlarifyLife Underinsurance Checker to find out if you are adequately insured.
Update your nominee details at the earliest, in case of any change, say in their address or even living status
Remember, your job is not done when you finally buy that term policy you were wishing for. Know more about best practices to follow after buying a term plan.
Well, your term insurance claim can be denied for various factors, but it has nothing to do with you buying the term plan online or offline.
Your insurer can deny your term insurance claim if
At the time of buying your term insurance policy, you lie, hide or give false information about your
Age
Medical history (yours as well as your family’s)
Lifestyle, hobbies and habits
Any other insurance policy you may have
Other personal information
So go ahead and buy a term insurance plan however you wish. Just be aware of the reasons for term insurance claim rejection so that you can help your loved ones or family avoid these hassles in the future.
Your term insurance claim won’t get rejected, just because you have bought it online.
However, keep in mind these points to reduce your chances of claim rejection, regardless of how you buy your term plan:
Don’t lie or hide any information (like age, lifestyle, medical history) from the insurer
Don’t forget to pay your premiums on time otherwise it can result in a term policy lapse
Inform your insurer about any changes in information that you have given at the time of application (such as change in nominee name or nominee living status) ASAP
Avoid unlawful activities where your death is not covered by your insurer, such as drunk driving or drug abuse
No, the physical presence of your nominee is not required to settle a claim. The process can be done online as well.
It is extremely helpful, especially for nominees who live/work abroad and have to travel back to their countries of residence/work right after performing the last rites. They may not get enough time to settle the claim. But insurers can help them follow the claim process seamlessly and receive the life cover without any unnecessary delay.
But remember, online claim settlement process may have certain restrictions as well; not every death claim can be settled online. Depending on your insurer as well as your case, your nominee may have to be physically present to settle your death claim.
It’s always a good practice to double-check with your insurer to ensure that this can be done. Inform your nominees accordingly.
Also remember, your nominees need to be extra-cautious during the claim process because any mistakes on their part can result in claim delay or even rejection and getting that sorted will take even more effort than usual because of their location. It may even require them to be physically present to settle the claim once and for all.
Your nominee can file the claim either online or offline; it is entirely up to them. The process (i.e. informing the insurer, filling the claim form, submitting documents) will remain the same in both the methods.
But remember, in certain cases your nominee may need to be physically available to file and settle the claim. It’s best to clarify the same with your insurer.
You may not get physical copies of your policy documents, typically, if you have bought the term plan online*. You don’t even need them because you’ll get the soft copies of the documents and you can store these safely.
Don’t forget to store these document soft copies in an E-Insurance Account. That way, you and your nominee can get access to them any time, anywhere. This is especially useful if you have multiple policies because it will help you find all your policy documents in one place, without the hassle of looking for physical documents.
One more thing, remember to inform your family about your eIA credentials so they can find your policy documents whenever required.
*May vary from insurer to insurer
Don’t worry. Even if you have bought the plan online, your nominee can still connect with your insurer and ask for help in understanding the claim process and filing the claim. In fact, it is advisable to do so to avoid making a mistake and facing a claim rejection.
Check with your insurer to ensure this provision is available with them.
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