Tips for smooth settlement of life insurance policy
Posted on: 24/Oct/2017 5:54:00 PM
If the proposal doesn’t contain the details of material facts, you will probably go through a very tough phase as a nominee. Hence, you got to be very careful at the time of filing proposal, as any kind of error may not reap you with the policy benefit when you desperately need. A few points you must consider to obtain speedy life insurance claim settlement includes the following:
Proposal form
Never allow your agent to fill up the form instead of you. Apart from keeping you informed of the details of the policy, the form also aids in avoiding after-sale shocks of all kinds. You should thus fill the form all by yourself so that you can stay aware of the policy details. Further, make sure to cross check the policy documents. When there is any kind of mismatch, you can cancel the policy within 15 days of getting the policy documents. This period is called the free-lock period.
Provide the right documents
During claim settlement, you may be put in trouble if there is irregularity with the documents submitted. Hence, right at the time of providing the age proof and medical details, ensure that you give out the exact details. Your claim may get rejected if you get to know that you have submitted wrong documents while buying the policy.
Disclosures
When you claim within 3 years from the date of risk or revival of insurance, it will be referred to as early death claim. So, in these scenarios, the company will perform very detailed investigation. In cases including non-disclosure and misrepresentation, such early claims will have high possibility of getting rejected. You may also have to submit extra document proofs for affirming the material facts. Hence, make sure not to withhold any material information like the pre-existing medical state, other kinds of insurance policies you have got enrolled for, etc. in addition, you should also be truthful about the level of consumption of alcohol or tobacco, and pre-existing diseases.
Prompt premium payment
You should make sure that you make prompt payment of premium amount and keep the policy in force. In case a policyholder fails to make the premium payment, and the policy gets lapsed, then the insurance firm will not be liable for paying back the full sum assured. You can make such policies as paid up policies where the sum insured is brought down based on the total premiums you have already paid.
Nominee
Though it is not compulsory to fill nomination details, you can fill it for making it easier for instance, when the insurance company demands for succession certificate if here is no nominee, you may need them. For success certificate, the procedures may be tedious and time consuming. Also, the nominee should be intimated earlier about the whereabouts of the policy documents.
