Tips for Faster Settlement of Term Insurance Claims
Term insurance is one of the most easy-to-understand life insurance. This is a straightforward policy where, in case of the death of the insured during the policy term, the nominee is paid the death benefit. When purchasing a term insurance plan, it is important to evaluate coverage carefully, the sum assured, and premiums. Another aspect that you must consider when purchasing term insurance is that the insurance provider follows a faster insurance settlement process.
You would not want your loved ones to go through any trouble in getting the payout in an already difficult time. So, let’s understand what you can do to ensure faster insurance settlement.
What is Claim Settlement?
When you purchase a term insurance plan, you hope the insurance provider will provide a safety net in case tragedy hits. The insurer will then pay the nominee the sum assured, also called the death benefit. This paying out is what we know as a claim settlement. A quick and easy claim settlement is a vital aspect of an insurance plan. Every insurance company has to disclose its claim settlement ratio compulsorily, so make sure to check the claim settlement ratio before purchasing term insurance.
Ensuring a Smooth and Quick Claim Settlement
In your absence, the last thing you want for your loved ones is to struggle to claim what is rightfully theirs. Here are some tips to ensure a smoother and faster insurance settlement:
1. Evaluate Your Policy Inside Out
Make sure that you evaluate and thoroughly understand your term insurance plan. Read all the features, coverages, policy tenure, inclusion and exclusions and the claim settlement process. Additionally, make sure that you understand the rights of the beneficiary and their eligibility to claim benefits under the term insurance.
2. Keep Documents Updated
Term insurance is usually taken for a long duration, so it's important to keep all the documents updated. This can be anything from your phone number to your bank account details. Remember that if you wish to change the beneficiary’s name, you have to contact the insurance provider and get approval to avoid any hassle at the time of claim settlement.
3. Educate the Nominee
Benefits under your term insurance plan are designed for the nominee, so it is important that they know the policy inside out. Educate them about the insurance plan so that they have a sound understanding of the benefits and claim settlement process.
4. Keep Documents Handy
Remember that at the time of settling claims under term insurance, the insurance provider needs all the documents to verify and approve the claims. So make sure to keep documents handy and avoid any last-minute hassle. Keep your nominee informed about the whereabouts of these documents.
5. Intimate the Insurance Provider Clearly
At the time of claiming benefits under the term insurance, it is important that the insurance provider is provided with all the details accurately within the stipulated time (if any). This includes filing a timely claim settlement application and providing all the required documents.
6. Take Timely Actions
Know that according to the Insurance Regulatory and Development Authority of India guidelines, it is mandatory for insurance companies to settle the claims within 30 days documents for claim settlement. Additionally, within 30 days of getting a claim settlement intimation, the insurance provider is obliged to begin the settlement process. 1
7. Opt for an E-Insurance Account
You also have the option to opt for an e-insurance account to minimise the paperwork and ensure a seamless claim settlement. The best part is that through an e-insurance account, you have 24*7 access to the application process.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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