How to file a life insurance claim?

To claim life insurance benefits, you require multiple copies of death certificate of the insured. The insurance agent may come in handy in filling out the necessary forms and serve as a bridge between the insurance company and the beneficiary. It is a matter of fact that exactly for this reason, one should not keep the life insurance policies in a safe deposit locker because the lockers are temporarily sealed upon the death of the rightful owner.

In case, if you are not sure about whom the agent or the whereabouts of the insurance policies, it is better a way to contact the insurance company directly. When you have the death certificate from the funeral director and insurance policy, you are now ready to submit the same to the insurance company.

The time taken for the claim settlement will differ between different insurance companies but once have submitted all the connected records, be assured that the claim will be settled soon.

You have different options available at your disposal to decide how the proceeds of the claim will be distributed after submitting the claim.

  • The first one is lump sum return in which you get back the entire death benefits in a single go.
  • You can get a part of the principal amount along with accrued interest if you are not interested in getting the whole amount in a single shot and instead want them to be distributed at a predetermined schedule (mutually agreed between you and the insurance company).
  • There is another option called "life income option" wherein you get a guaranteed return for your life but the amount of return depends on the quantum of death benefit, your gender and age at the time of the dearth of the insured.

How frequently shall I reconsider / review my life insurance policy?

It will be better if you review your policy once in a year or whenever there is a major change in life style. The rule of thumb is whenever there is a change in your life, it will definitely have an impact on your insurance needs.

The change in your life may be marriage or divorce, birth or adoption of a child / grandchild, change in health of self / spouse, shouldering the financial burden of dependents and purchase / refinancing of immovable property, inheriting an invaluable property / windfall profit.