Step-by-Step Guide to Filing a Term Insurance Claim

Well, it is for the insured as well as their nominee. But you do not need to worry about this if you understand the process of filing a term insurance claim inside out.  

Understanding Term Insurance 

Before we move ahead with the guide on filing for term insurance claims, let’s first take a quick detour to understand what term insurance is. 

Term insurance is a life insurance plan that is designed to provide life coverage to an individual, called the insured, for a specific number of years. In case the insured passes away during the tenure of the insurance plan, the appointed nominee receives the sum assured, which is called the death benefit. Remember that term insurance is a pure life cover, i.e. it does not typically provide savings or profits during the tenure. If the insured survives the term, the policy comes to an end unless it’s a Return of Premium Policy.  

Filing Term Insurance Claims: Step-by-Step Guide 

When purchasing term insurance, you, as well as your appointed nominee, must know the claim settlement process. In case of the death of the insured, the nominee or a close relative will have to carry out the formalities. Here’s a simple guide to help you understand the term insurance claims: 

1. Intimate the Insurer 

The first step in filing for the claim is to inform the insurance provider about the insured’s demise. Remember that intimating the insurance provider about the insured’s demise has to be done within the timeframe stipulated by the insurance company. Most companies allow a period of 30 days.  

2. File the Claim Settlement Form 

The next step is filing the claim settlement form. The details will include the date, time, and nature of death, as well as any other information the insurance provider may ask for. Remember that if the insured passes away without appointing a beneficiary, then you will have to prove beyond reasonable doubt that you are the legal heir and are legally entitled to the benefits under the term insurance.  

3. Submit the Required Documents 

Once the claim settlement form is filled out, the insurance provider requires the nominee to submit all the relevant documents, such as the death certificate of the insured, insurance policy documents, etc. Know that depending on the reason for the insured's death, the document requirements can change. For instance, if the insured died due to a road accident, you might be asked to provide additional documents like a police FIR, etc. It is suggested that these documents be gathered promptly.  

4. Wait for Verification and Approval 

Once the insurance company has all the relevant documents in addition to the claim settlement form, they will carefully evaluate the claims and approve if no irregularities are found. You must know that the insurance company is under an obligation to settle/ reject the claims within 30 days of receiving the current documents.1 

5. Settlement of the Claims 

If the term insurance claims are approved, the sum assured under the term insurance is directly transferred to the nominee’s bank account, as mentioned in the policy document. Depending on the chosen plan, the death benefit may be paid either as a lump sum or in some instalments.