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How to Ensure Your Term Insurance Claim Gets Processed Smoothly

By Neeraj Gupta, CEO, Policybazaar.ae

Life is full of surprises and uncertainties, especially with the backdrop of the current pandemic. The good part is that insurance by its absolute nature has provided relief and certainty in many critical aspects, such as health and death risks. As a cascading effect of the pandemic, the need, and importance of having term plan has increased manifold. In fact, there is literally no alternative than to buy a term life insurance plan if your kids and loved ones are financially dependent upon you.

Choosing the right Term life insurance is one of the best financial instruments every individual must take to plan for protection against risks of morbidity and mortality. Term life insurance would ensure that if something unforeseen happens to you, your family’s financial health wouldn’t be compromised. It is important not just for financial safety but, for mental well-being too. The pay-out of term cover would help pay off policyholder’s lingering debts, and manage day-to-day living expenses making financial strain less burdensome for those you leave behind.

There are two main aspects people should abide by while they buy Term life cover. Foremost, one should look for a term policy from the insurer where it will pay out the claim immediately as an when it arises and secondly, the insurer must pay the claim without any inconvenience or delay to the nominee.

Here are some tips and advice that an individual must consider ensuring that their experience during claim settlement is hassle-free for their nominee.

Pay insurance premium on time– In case the premium of term life insurance is not paid by the due date, the policy is considered as lapsed and the policyholder loses its benefits. While, there is a ‘grace period’ of 15 to 30 days depending on the premium payment cycle (monthly, quarterly, half yearly or annually) it is advised to pay the premium on time i.e. before the due date to avoid the chances for policy lapse.

Accurate disclosures– For the claim amount to be paid well on time, policy buyers need to ensure that all the disclosures are accurate and in good faith. Remember that incorrect disclosures, non-disclosures, or even partial disclosures of significant and material facts are the major reason behind the rejection of the claim.

In fact, the base for a hassle-free claim experience begins not at the time of claim, but actually during the time when the insurance policy is purchased.

Take your nominee through the claim process– If in case anything goes wrong, the policyholder wouldn’t be there with the nominee to assist him/her. Thus, to avoid any trouble it’s better to take your nominee through the term life insurance claim settlement process. If you’ve bought the policy via a broker or financial advisor, make sure to connect them to your nominee and share contact details.

Get all the required documents in order– The nominee should know about the list of documents they’ll need to submit in the event of getting the claim processed. It is advisable that the policyholder should store all relevant policy documents safely in digital format and share the details with their nominee. This will ensure the nominee to have ready access to the documents at the time of claim. Also, here to cross-check the required documents and procure before filing the claim, the nominee can visit the insurer’s website.

No charges to secure your claim– The nominee shouldn’t agree to pay any additional charges at the time of filing the claim. This fact should be conveyed to your nominee by the policyholder otherwise, anyone could bully the nominee for claim approval.

All the above tips would help to make your nominee’s life simple at the time of claim.

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