Death Makes Life Tough. Death Claim Eases It.
Accepting the death of a loved one is one of the toughest jobs in the world. However, the course of life never stops and you need to move on.
Funds received from a death claim helps your family to proceed in life. Hence, it's important for the beneficiary to be aware of the procedures of filing a death claim to make it hassle-free whenever the claim is filed. If the life insurance policy holder passes away during the term of the policy, the nominee needs to inform the insurer immediately.
Once done, the nominee has to submit a claim form to the insurance office along with the original documents of the policy and a copy of the death certificate. This is a time consuming process that can extend from a few weeks to three to four months in case all the papers are correctly submitted on time. So the earlier you file the claim, faster is the chance of getting the money. In case of maturity benefits, the claim is not automatically paid to the beneficiary. The insurer sends a claim for to the beneficiary which needs to be submitted. Once this is approved, the proceeds are either sent by mail or cleared electronically by the insurer based on the choice of the beneficiary.
A great benefit of life insurance claim is the proceeds from a life insurance policy are tax-free on maturity and the sum received by the nominee is tax-free.