Claim settlement process for life insurance should be a smooth process for the nominee. And for the faster claim processing, the claimant should submit the right and complete set of documentation.
If you do not want your nominees to go through a cumbersome claim process, it is imperative to do the right things when buying the policy. Consider these points to ensure the speedy and smooth settlement of life insurance claims.
Fill your proposal form carefully: Fill the proposal form yourself. Do not allow anyone else to fill it for you. It not only helps to provide right details but also keeps you informed about the details of the policy. One has the right to cancel the policy in the free-look period i.e. within 15 days from the date of receiving the policy documents.
Submit correct documents: It becomes important to submit correct documents to avoid any trouble at the time of claim settlement. Submit all the details at related documents pertaining to age proof and medical details. The chances for the claim-rejection or denial are high if it is revealed that wrong or misleading details were submitted at the time of policy purchase.
Provide disclosures: It is essential to provide disclosures and material documents related to pre-existing medical conditions or any other policies you hold while purchasing the policy to avoid mismatch of information, which eventually leads to claim denial. This is essential because claims are received within 3 years from the date of risk or from the revival are classified as an early death claim. Insurance companies then carry out a detailed investigation in such cases. So any non-disclosures or misinterpretations may lead to claim denial.
So, apart from issuing disclosures about pre-existing conditions, also be truthful about alcohol and tobacco consumption levels.
Pay regularly: Pay your premiums regularly to continue the policy and avoid lapses. Any irregularity in premium payments makes the insurance company non-liable to pay the full sum-insured. In case of a lapsed policy, one can convert it into paid-up policy, where the sum insured is reduced to the amount based on the paid premiums.
Appoint nominees: Providing the right details of the nominee is important for smooth claim-settlement. In case of absence of nomination, the insurance company asks for a succession certificate, which is a cumbersome and time-consuming process for a nominee. Moreover, the nominee should have the knowledge of where the policy documents are.
In conclusion, in most cases, there would be a delay or denial in the life insurance claim because the claimant has failed to follow or submit the necessary documentation. It is imperative for a claimant to take proper steps and follow proper documentation to ensure a smooth claim settlement.
