Life Insurance Death Claim Process: Steps to Apply and Documents Required

Life insurance is a popular financial instrument availed by many to ensure the financial security of their families in their absence. If an insured person dies within an insurance tenure, the death benefit will be compensated to their nominee by the insurer.

For this, the nominee has to file for the death claim with the respective insurer responsible for paying the life coverage amount. Let's have a look at the complete death claim process.

Step 1: Inform the Insurance Provider

The foremost step you need to follow while claiming the death of an insured person is to inform the insurance company about the incident with the necessary proof. You will need to submit a claim settlement form, a death certificate, and other necessary documents at this phase. Ensure that you inform the news of your insured family member's demise within 90 days after the date of demise.

To file for a claim, you can either complete an application form and complete the formalities online or directly visit the insurance company. In the form, you must fill out information like the policyholder's name, date of birth, policy number, date of death, place of death, and cause.

Step 2: Evaluation of Claim by the Insurer

As soon as you file a death claim, the insurance provider will thoroughly analyse it. The documents will be inspected along with additional information, if necessary. An insurer may convey a requirement letter to gather further information if you are the nominee.

If any sort of discrepancy or suspicious matter arises among the documents, the insurance company will investigate the issue and, if unsatisfied, may reject your claim. For instance, if an insured person dies after an insurance tenure, the insurer will not entertain your death claim.

Step 3: Settlement of Claim

Based on the assessment of the documents and information you furnished, the insurer will accept or discard your claim request. If there is approval, an insurance company will provide the insured money to your bank account within 15 to 30 days. On the contrary, if an insurer rejects your claim, you will receive a letter of rejection from them explaining the causes of the rejection.

According to the latest update of the Insurance Regulatory and Development Authority of India (IRDAI), every insurance provider must settle a claim within a month. In addition, if a claim needs more investigation, it must be settled before six months.

In general, insurance providers conduct a thorough investigation to determine the genuineness of the claim. They can even consult professional authorities such as doctors and accident investigators.

Mentioned below are some important documents required to be submitted to an insurer while filing for a death claim:

• Death Certificate: It is an important document offered by the registrar that comprises verified details about the place, time, and reason for the insured person's death.
• Nominee’s ID Proof: Before granting the sum assured to the respective nominee, insurance providers always verify their identity proof to ensure that the assured amount reaches the genuine person nominated by the insured individual.
• Insurance Policy Papers: The insurer also checks insurance policy papers since the amount of the payout sum depends on it.
• Medical Certificate: Sometimes, a medical certificate of an insured person is required. However, it varies from one insurance company to another. 
• Post-Mortem Report: A post-mortem or autopsy report may be required by the insurance company in the event of an unnatural death. The terms and sum assured of an insurance policy may change as per the type of death. So, the insurer may require an autopsy report to pass the claim. 
• Hospital Records: If an insured person dies due to an illness, and there is an involvement of hospitalisation, insurers demand hospital records to gather important details about the deceased individual. 
• Employer Certificate: If an insured person expires at a tender age, an employer certificate is needed. However, the terms and conditions of insurance policies differ from insurer to insurer. So, it makes sense if you communicate with an insurance provider to confirm whether they need the employer certificate of the deceased person.

While opting for a life insurance policy, try to avoid making any mistakes. This is because any minor mistake from your side may cause a problem for your nominee in obtaining the claim from the insurer.

Following are some precautionary measures you need to follow to avoid rejection of a life insurance claim:

• Avoid Hiding or Leaving Out Details: An insurance company must be aware of every detail about you. Hence, while filling out the application form for claims, try to avoid missing out on any information. Furthermore, avoid omitting any detail without knowing. Sometimes, people hide information from their insurers to get a lower premium amount, which makes their family face claim rejection. Also, in some cases, the insurer can make mistakes by entering the wrong information. This is why you are advised to check the policy papers thoroughly after receiving them from the insurer. By doing so, you can easily identify and rectify the errors and lessen the chances of claim rejection. 

• Be Punctual in Paying Your Premiums: Another effective way by which the chances of claim rejection can be reduced is by paying insurance premiums punctually. Remember that an insurance policy lapses if you do not make premium payments on time. After a policy lapse, it may not be recovered, and the premiums you have paid up to that period will be forfeited.

Even though insurance providers will send reminder notices about due dates for premiums, it is sensible to set your reminder so that you can clear the dues on time without fail. 

• Update Nominee Information on Time: After you leave for your heavenly abode, your entire insured money will be offered to your beneficiary. Therefore, you need to update the information about your nominee to the insurance organisation. This information comprises the nominee's name, address, contact number, email ID, and so on. Besides, if the nominated individual dies, you can change your beneficiary. You can choose anyone from your family to become your nominee, including your parents, children, siblings, or spouse. 

• Avoid Delaying the Filing of Claims: In case, there is a medical emergency, you must notify the insurance provider straightaway. This is because, according to an insurance plan agreement, critical incidents are to be reported to the insurer instantly. In case of any problem, you can provide any of your trusted friends' or relatives' phone numbers to the insurer to contact them during emergencies. If you delay this process, the insurance company will think something suspicious and likely dismiss your claim.   

• Fill Out the Form on Your Own: Many people make their agents fill out the insurance application forms, which can lead to numerous mistakes and omissions. This is because your agents may not know every detail about you, like your medical background. They will fill out your form so that you can avail the maximum benefits and might overlook details, like tobacco and alcohol consumption. These can lead to serious problems and claim rejection in the future if these turn out to be the cause of death. This is why you should fill out the form on your own and enter true information.  

• Undergo Medical Tests: Insurance providers request medical tests to be aware of an insured person's health condition. Sometimes people avoid undergoing these tests, but you are recommended to go for them. This is because insurance claims often get rejected due to pre-existing illnesses of an insured individual. However, this claim rejection can be avoided if the insured has previously undergone a medical examination. 

• Know the Exceptions: Every insurance company jots down certain exceptions under which a beneficiary will not be allowed to claim insurance money. This includes the death of the insured person due to suicide, drug addiction, murder, accident due to intoxication, etc. If an insured individual dies due to these causes, the insurer may reject the claim. A comprehensive idea about the death claim process will help you obtain the insured sum effortlessly. However, remember that the terms and conditions of insurance plans vary from insurer to insurer. So, being a nominee, you must first inform your insurance provider about the insured person's death and follow the claim process accordingly.