Death Claim Process in Life Insurance Explained

What is a Death Benefit in life insurance?

A death benefit in life insurance means the money that the nominee will get if the life assured dies during the policy term. When a person buys a life insurance plan, they choose a nominee who will receive the death benefit if the life assured passes away. The death benefit helps the family deal with finances after losing a loved one.

 

Why is life insurance death benefit important for your family’s financial security?

Life insurance death benefit can protect your family when you're no longer around. So, why is that important? Let’s find out.

• Day-to-day cost: The death benefit will cover the family's food, rent, etc.
• School and education: The family can use the death benefit for your children's tuition fees and education.
• Loans and EMIs: If you have a house or car loan, your family can pay these off with the help of the sum assured.
• Financial problems with no cash: Eliminating the stress of money in a difficult time for your family.
• Peace of mind: You feel relaxed knowing your family will have support if anything happens to you.
   

How does a death benefit work in life insurance?

When a life assured dies during the policy period, the nominee must tell the insurance company. This is called filing a death claim in life insurance. Once the claim is verified and approved, the insurance company gives the death benefit to the nominee. If the death occurs within three years of policy issuance or revival, it may be subject to additional scrutiny it is called an early death claim in life insurance.

 

Payout options in life insurance policy

When someone dies and the nominee files a death claim in life insurance, the money can be given in two ways:

 

1. Lump Sum Payment:

   • The full amount is given to the nominee at once.
     
   • Useful for paying off big loans or urgent needs.
     
   • Helps the family manage sudden expenses.
     

2. Regular payouts:

   • The money is paid in parts, like monthly, yearly or a combination of both.
     
   • Helps the family manage regular expenses over time.
     
   • Gives a steady flow of money for daily needs.
     

3. Some policies also offer both options:

   • A part of the money is paid right away (lump sum).
   • The rest is given in regular payout

Families can choose what works best for them. Before buying a life insurance plan, it’s good to know which option is suitable for your family.
 

What are the requirements for life insurance death claim settlements?

To settle a death claim in Life Insurance the following documents are required:

1. Attested copy of death certificate issued by the local municipal authority.
2. Death Claim Intimation Form
3. NEFT Mandate form attested by bank authorities or copy of cancelled cheque or bank account passbook.
4. Nominee’s photo identity & address proof such as copy of passport, Voter Identity card, Aadhar(UID) card, etc.
5. PAN Card/ Form 60

Additional documents required on the basis of cause of death (download form)

 

Medical/ Natural death

• Copy of Medical Records (Admission Notes, Discharge/ Death Summary, Test Reports etc.)
• Attending physician’s statement
• Employer Certificate (wherever Applicable)
   

Accidental/ Un-Natural Death

• First Information Report (FIR) or Panchnama/ police complaint
• All documents must be clear and correct. This helps the insurance company process the claim faster.

Note: These are general documents required during life insurance death claim settlement. The documents vary from insurer to insurer.

 

What is the process to raise a death claim in life insurance?

Here is how to raise a death claim in life insurance:

• Step 1: Inform the insurance company about the death
  
• Step 2: Collect and fill out the claim form
  
• Step 3: Attach all required documents
  
• Step 4: Submit the form and documents to the insurer (online or offline)
  
• Step 5: The insurer checks everything
  
• Step 6: If all is in order, the death benefit is paid

Note: The process to raise a death claim in life insurance varies from insurer to insurer.

 

How to track the status of your life insurance death claim?

Once you file a death claim in life insurance, you may want to know what is happening with it. Most insurance companies now allow you to track the claim status easily.

Here are the simple steps:

• Go to the insurer’s website: Find the “Track Claim” or “Claim Status” option.
• Enter details: You’ll need to enter your claim ID, policy number, or mobile number.
• Click submit: After entering the details, the current status of your claim will be shown.
• Visit a branch: If you prefer offline help, you can also visit the company’s office.
• Call customer care: Most insurers have a toll-free number you can call.

Tracking helps you stay updated and take quick action if more documents are needed. It also gives peace of mind, knowing your claim is moving forward.

Note: Claim status tracking steps are specific to insurers. Please check with your insurance provider or visit their website to check your claim status.

 

Top reasons for life insurance death claim rejections and tips to prevent them

Sometimes, death claims in life insurance are rejected. This can cause problems for the family. Below are some of the reasons why this happens:

• Incorrect information: If the buyer provided false information while purchasing the policy.
• Health issues not disclosed: Not disclosing health issues or bad habits (like smoking).
• Premiums not paid: Policy lapse due to non-payment of premiums.
• Claim filed during waiting period: Some policies have a short time at the beginning when claims may not be allowed.

Tips to prevent rejection:

• Always fill out the form truthfully.
  
• Share correct medical and personal information.
• Pay premiums on time.
• Tell your nominee about the policy and documents.

By following these simple steps, your death claim settlement in life insurance is more likely to go through smoothly.

 

Conclusion

A life insurance death claim is the way to get the money promised under the policy upon the death of the life assured. This money can help the family to pay for day-to-day expenses, pay off loans, and/or invest for the future. To settle a death claim promptly and efficiently, it is critical to understand the process of a death claim in life insurance, submit the documents properly, and follow procedures correctly the first time. Take time to read the terms and conditions of your life insurance plan and disclose all relevant information to the nominee.