In today’s uncertain times, it is necessary to invest in a term insurance plan. If you are eager to know what is term insurance, read on.
Term insurance is the simplest form of life insurance policy that provides financial protection to the policyholder’s family in case of his or her untimely demise. An ideal way to get the best deal is with a term insurance plan calculator. You can use it to compare the various features, premiums, inclusions, exclusions, and other clauses. It can help you select the plan that meets your needs and budget.
While applying for a term insurance policy, it is advisable to furnish all the required details correctly so that your family does not face any issues during claim settlement. According to the reports published by the Insurance Regulatory and Development Authority of India (IRDAI), the death benefit claims of life insurance policies stay unresolved for over 12 months before the final payment.
Numerous factors hamper the claim settlement procedure. For instance, the death of the nominee, incorrect information given by the policyholder while buying the policy, and wrong details about pre-existing health conditions can derail the claim settlement process.
The insurer has the right to approve or reject the claim after reviewing it. However, by following a few useful ideas, you can ensure that your family goes through a smooth claim settlement process during your absence. These include:
- Provide accurate information
While filling the term insurance policy form, ensure that you furnish all the required details accurately. Be honest about your pre-existing medical conditions. Also, be straightforward about your lifestyle habits, like smoking and the consumption of alcohol. Double-check your application form before submitting it so that there are no rooms for errors. Fill the form on your own and do not rely on an insurance agent, as he or she may not know everything about you. Improper information or ambiguity about your medical conditions and lifestyle habits can halt the term insurance claim settlement process.
- Understand your policy properly
Before investing in a term plan, it is essential to review it thoroughly. Read the policy document and the fine print of the terms and conditions properly before signing the application form. Learn about all the features and clauses so that you know your policy inside out.
- Know about the claim settlement process
You and the nominee of your policy must have complete knowledge of the claim settlement process. Both of you should know about the formalities and documentation requirements. If any unfortunate event occurs, your nominee needs to expedite the claim settlement process.
- Inform the insurer on time
Your nominee needs to notify the insurance company about your untimely absence. The nominee needs to send an email or an application to the concerned insurance company before filing the claim. The insurer requires the claim intimation form before they can start the claim settlement process. The nominee can download the form from the insurer’s official website or collect it from their office.
- Keep all the necessary documents handy
Many times, family members do not know where the policyholder has kept the policy. In such a case, it becomes difficult for the family to initiate the claim settlement process. Therefore, keep your original policy papers along with other necessary documents at a place, which has easy access. Do inform your loved ones about the same. The required documents include original policy papers, death certificate, and the nominee’s ID proof, which can be his or her Aadhar card, PAN card, or Voter ID.
A fast claim settlement process will ensure that your dear ones get the death benefit on time, which can be useful in meeting their daily expenses. So, follow these tips to make sure that they get the claim amount when they need it the most!