How to Claim Term Insurance After Death

To claim term insurance after death, the nominee must inform the insurance company, submit the required documents (including the death certificate and policy details), and complete the claim form. Once verified, the insurer processes and pays the sum assured to the nominee.

While the process is straightforward, knowing each step in advance helps families avoid delays during an already difficult time.

Step-by-Step Process to Claim Term Insurance

Here is how the claim process usually works:

1. Inform the Insurance Company Immediately

The nominee or family member should notify the insurer as soon as possible after the policyholder’s death.

This can usually be done through:

• The insurer’s website
• Customer care helpline
• Visiting the nearest branch

Early intimation ensures the process starts without unnecessary delays.

2. Collect and Submit Required Documents

The nominee will need to submit certain documents. These typically include:

• Original or certified copy of the death certificate
• Policy document
• Claim form (filled and signed)
• Identity proof of nominee
• Bank account details for payout
• Medical records (if death was due to illness)
• FIR or post-mortem report (in case of accidental death)

Submitting complete and accurate documents speeds up processing.

3. Verification by the Insurance Company

Once documents are submitted, the insurer verifies:

• Policy validity
• Premium payment status
• Cause of death
• Nominee details

If everything is in order, the claim is approved.

Insurance companies are required to settle claims within regulatory timelines once all documents are received.

4. Claim Settlement and Payout

After approval, the sum assured is paid directly to the nominee’s bank account.

The payout may be:

• Lump sum
• Instalments (if selected at the time of purchase)

This financial support is meant to help the family manage expenses, loans, and daily living costs.

What If the Policy Is Within the First Three Years?

If death occurs within the early policy years, the insurer may conduct a more detailed review. This is standard procedure and not a reason for concern, provided all disclosures were accurate at the time of purchase.

Honest disclosure at the time of buying the policy ensures smooth claim settlement later.

Common Reasons for Claim Delays

Understanding potential issues can help families avoid complications:

• Incorrect nominee details
• Non-disclosure of medical history
• Lapsed policy due to unpaid premiums
• Incomplete documentation

Keeping policy details updated and premiums paid on time is crucial.

Why Awareness Matters

Many families struggle not because claims are difficult, but because they do not know the process. Term insurance is designed to provide financial security quickly and efficiently.

Understanding the claim procedure ensures that your loved ones receive support without added stress.