In this article of Jeevan Bima Bazaar, we are going to present answers to some of the questions related to Death Claim which are often asked by Life Insurance Agents and Policyholders. Life Insurance is not just a means of saving, but it is the basis of Financial Security for the future of the Policyholder and his Family.
Now if you are an Insurance Agent, then you must have answers to all types of questions related to Death Claim. So that, you can help your policyholders and their nominees at the time of claim. We also want to tell you that if you have some questions related to Death Claim which have not been answered here, then write it in the comment box. We will be happy to help you.
Death Claim in Life Insurance: What, When & How
Buying a Life Insurance Policy is a very wise decision. Because it provides Financial Security to your family's future. But most people do not give information about it to any of their family members after buying a Life Insurance Policy. Due to which there may be a delay in the Death Claim later.
In many cases, when the Death Claim is made very late in the Life Insurance Policy, the Insurance Company can also reject such claims. Therefore, after buying a Life Insurance Policy, you must give its information to your family members.
Death Claim in Life Insurance Policies means the amount that the nominee of the policyholder receives from the Insurance Company on the Death of the Policyholder. On the death of the policyholder during the policy term, the nominee declared in the policy has the right to receive this amount as per the terms of the policy, provided the policy is in full force at the time of the policyholder’s death.
Immediately after the death of the policyholder, the nominee declared in the policy should inform the Life Insurance Company about this event in writing. Immediately after the written information of the death of the policyholder, the Insurance Company issues the necessary documents and other guidelines regarding the death claim of the policy.
Immediately after the death of the policyholder in a Life Insurance Policy, the nominee should give written information to the concerned Life Insurance Company along with the Death Certificate of the policyholder. In which detailed details of the death of the policyholder are given. You can download this application from our website.
It is very important to check documents in Life Insurance Policies as any mistakes like Name or Date of Birth can cause problems in future Insurance Claim Processing or Payment. If the documents are not correct and updated, your family may face various Financial and Legal Problems after your death.
Accuracy of documents ensures that there are no hindrances in the Life Insurance Policy processing and your family can get your life insurance policy claim payment easily.
You should check the documents for your Life Insurance Policy in such a way that if there is a Death Claim in your Insurance Policy, your family will not face any problem in getting the money.
Match the Name and Date of Birth: Your Name and Date of Birth in your Life Insurance Policy should be as per your School Certificate.
Check the Nominee Details: The Name and Age of the Nominee appointed in your policy should be as per his/her School Certificate.
Check other Documents: The documents of you and all your family members like Aadhar Card, PAN Card, voter ID Card, Ration Card, Copy of Family Register, Driving License, etc. should match the Name and Date of Birth of all as per their School Certificate.
Read the Terms and Conditions of the Policy: In the Policy Bond of the Life Insurance Policy, all the Terms and Conditions of the Policy are given in detail. So you must read all the terms and conditions of your policy carefully.
In Life Insurance Policies, the death of the insured person must be reported within 15 to 90 days. The main reason for this is that if the insured person dies due to an accident or other unexpected reasons, the investigation process remains simple and effective for the insurance company. For example, in case of accidental death, if the investigation is done on time, the correct details of the incident can be obtained from eyewitnesses and other evidence. But if there is a delay, obtaining evidence and information can be challenging. For this reason, it is considered better to apply for a death claim within 15 to 90 days in most life insurance policies.
The first thing to check in the death claim of an insurance policy is the FUP (First Unpaid Premium). Verifying the FUP clarifies whether all policy premiums were paid up to the time of the policyholder's death. To do this, check the "Next Premium Due" date on the last premium receipt. If this date falls after the policyholder's death, it indicates that the policy was active at the time of death and is therefore eligible for a death claim.
If a life insurance company receives a death claim notice after a significant delay, the claim investigation process may become more complex. In addition to the standard claim review, the insurer will likely examine the reasons behind the delay in submitting the death notice, which can extend the overall processing time. If essential evidence related to the death is difficult to obtain due to the delay, the insurer may be unable to validate the claim, potentially leading to its denial. Timely submission of a death claim helps ensure a smoother and more efficient claims process.
For a life insurance policy's death claim, a valid death certificate is essential. Insurance companies and financial institutions generally accept a death certificate issued on Form No. 6C as the official and valid form of certification. This specific format, typically issued by recognized local authorities like a municipal corporation or state-recognized office, is necessary to initiate the claim process successfully.
Certificates from non-official sources, such as a village leader or an unverified hospital document, may not be considered adequate unless they are subsequently processed into the official Form No. 6C.
To obtain an official death certificate for a life insurance policy claim, follow these steps:
Obtain a Local Certificate: For individuals in rural areas, a preliminary death certificate can be obtained from the village head, while residents of urban areas can obtain one from the Nagar Panchayat. If the death occurred in a hospital, the hospital may also issue a preliminary death certificate.
Apply for the Official Certificate (Form No. 6C): Using this local certificate as a basis, you can apply for an official death certificate in Form No. 6C by visiting a Sahaj Jan Seva Kendra or a Common Service Center (CSC). This official certificate is generally required by insurance companies and financial institutions for claim processing.
Processing Time: After submitting the application, the official death certificate is typically issued within 15 to 21 days, allowing you to proceed with the insurance claim process.
If a policyholder passes away in a village, the initial death certificate can be obtained from the Gram Panchayat. For deaths occurring in a hospital, the hospital itself can issue a preliminary death certificate.
After receiving this local certificate, you can visit a Sahaj Jan Seva Kendra or Common Service Center (CSC) to apply online for an official death certificate. Once the registration process is complete, the official death certificate is typically issued within 15 to 21 days. This official document can then be used to file a death claim with the insurance company.
If there is a delay in obtaining a death certificate needed for a life insurance claim, it’s advisable to immediately submit preliminary death claim information to your life insurance company. This helps establish an early record of the policyholder's death, ensuring that the claim is documented within a reasonable timeframe. By notifying the insurance company promptly, you reduce the risk of claim rejection due to delays in obtaining the necessary documentation. Click on the button below to get detailed information on this topic.
No, an insurance company cannot reject a death claim without providing notice. According to the Insurance Regulatory and Development Authority of India (IRDAI) guidelines, insurers are required to inform the nominee or claimant of any rejection in writing. They must clearly state the specific reasons for denying the death claim. This requirement ensures transparency and allows the claimant to understand and, if needed, address the reasons for rejection.
If your life insurance death claim is rejected and you disagree with the reasons given by the insurance company, you should, first of all, lodge a complaint with the Grievance Redressal Officer (GRO) of the insurance company.
If the response from the GRO of the insurance company is unsatisfactory, you can escalate the complaint to IRDAI. The complaint can be lodged via email at complaints@irdai.gov.in or through their toll-free number: 155255 or 1800-425-4732.
In India, it is generally not possible to file a death claim without a death certificate. This document is essential for all Indian life insurance companies as it officially verifies the death of the policyholder. A valid death certificate must be provided to proceed with a claim.
However, if you are awaiting a valid death certificate, you can still submit a preliminary death claim notice to the insurance company to notify them of the policyholder’s passing. This ensures that the insurance company is aware of the claim and can begin preliminary processing.
We have shared comprehensive guidelines on drafting an email to notify a life insurance company of a death claim in one of our articles. The article also includes a sample email template filled with placeholder data to guide you through the process. For full details and to view the sample email, click on the "Know in Detail" button below.
To get the address, contact number, email ID and other important information of any branch office of Life Insurance Corporation of India, one should visit locator.jeevanbimabazaar.com. Here one should click on the "Search Branch" menu given on the menu bar. Now a page will open in your device. With the help of this page, you can get detailed information about any branch office of LIC.
The full form of FUP is First Unpaid Premium. It is the date when the insurance policyholder did not pay his premium for the first time. It is directly related to the in-force status of the policy.
FUP plays an important role at the time of death claim. It is a means to check whether the policy of the policyholder was active at the time of his death or not. If it is clear from the FUP that the premiums were being paid as per the rules and the policy was in-force, then the death claim will be considered valid. On the other hand, if the policy has lapsed, then the claim may be rejected.
Next Premium Due is written in every premium payment receipt of life insurance policies. Each premium is related to a certain due date of its respective policy and the Next Premium Due mentioned in that receipt tells the policyholder what will be the due date of the next premium immediately after that deposit receipt.
The purpose of this is to inform the policyholder about the last date for payment of the next premium. So that he can deposit his premium on time. Because when the premium of a policy is deposited on time, it always remains eligible for death claim.
In case of death of the policyholder in any life insurance policy, before making a death claim, it is best to ensure whether all the premiums of the policy are paid or not. For this, check the receipt of the last premium paid for the policy and see the next premium due. If this date is after the date of death of the policyholder, it means that all the premiums of the policy are paid.
In the absence of the last receipt, the status of that policy can be obtained from the online portal of the insurance company or the branch office and the premiums paid can be checked from it. If you are a customer, you can also take the help of a life insurance agent.
If a death claim is received in a life insurance policy, then the receipt of the last premium payment of that insurance policy becomes important. Because through this receipt it can be ascertained whether the policy was in force condition or not. Now if the receipt of the last premium payment of any policy is not available, then by checking the status of that policy it can be ascertained whether that policy is in force condition or not.
The status of any life insurance policy can be obtained from any branch office of the concerned life insurance company or through the online portal of that company.
If the receipt of a life insurance policy is not available, the FUP of that policy can be checked from the status of that policy. The status of any life insurance policy can be obtained by visiting any branch office of the concerned life insurance company or through its online portal.
The Grace Period in Life Insurance Policies is the additional time given to the policyholder to pay the premium if he fails to make the payment by the due date. It is usually 15 days for monthly premiums and 30 days for annual, half-yearly or quarterly premiums. If the payment is made within this period, the policy remains active.
If the policyholder dies during the grace period, the policy is usually considered active, and that life insurance policy is considered eligible for a death claim. However, the insurance company may deduct the outstanding premium and any applicable interest from the death claim amount.
If the Policyholder dies during the Grace Period, the Life Insurance Policy is considered eligible for a Death Claim. However, the amount of outstanding premiums and any applicable interest may be deducted from the Death Claim Amount. The policy is considered active during this period.
The Grace Period for Monthly Life Insurance Premiums is 15 days. However, for this, we would advise that you must read the terms and conditions of your Life Insurance Policy carefully once.
The Grace Period for Quarterly, Half-Yearly or Yearly Life Insurance Premiums is 30 days. However, for this, we would advise that you must read the terms and conditions of your life insurance policy carefully once.
Yes, Death Claims in Life Insurance can be made during the Grace Period. If the insured dies during this period, the policy is considered active and the death claim is paid. However, the outstanding premium and any applicable interest is deducted from the claim amount.
Keeping in mind the interests of policyholders, IRDA has issued clear guidelines regarding the Grace Period in Life Insurance Policies. According to IRDA, the minimum grace period for life insurance policies with monthly premium is 15 days and for policies whose premium is paid yearly, half-yearly or quarterly, the minimum grace period is 30 days.
During the grace period, the policyholder will continue to receive all the benefits of his life insurance policy. Even if the policyholder dies during this period, the policy remains eligible for death claim.
If you have a Life Insurance Policy, you should read your Policy Bond carefully. All the terms and conditions of that policy are clearly written on every policy bond. In the same terms and conditions, you will also get details of the terms and conditions related to the grace period for your life insurance policy.
Apart from the above, you can also check the rules related to the grace period of your policy by calling the customer care number of your life insurance company. Apart from this, the rules related to the grace period can also be checked in the policy rules on the official website of the life insurance company and information can also be obtained from the concerned agents of the life insurance company.
If the premium of the life insurance policy is not deposited on time, then such policies do not provide the benefit of risk cover. In such a situation, you should ensure that you keep depositing the premium of your life insurance policy on time.
If for some reason you are unable to deposit the premium of your policy on the due date, then you should try to deposit the premium of your policy within the grace period. After the grace period expires, the policy is usually considered lapsed. To revive such policies, a late fee has to be paid. In case of a longer delay, the policy has to go through a revival process to be revived.
Yes, if the premium is not paid during the grace period, the life insurance policy may lapse. This means that the benefits and coverage of the policy cease. However, an option to reactivate the policy (revival) may be available, which may attract additional charges or interest.
If the premium of a life insurance policy is not paid, the policy may lapse. Lapsed policies become ineligible for death-related claims. Due to which your family's financial future may be in danger. However, lapsed life insurance policies can be revived, but for this it has to go through the revival process.
Usually there are no additional charges for paying the insurance policy premium during the grace period. However, if the premium is paid after this period, the insurance company may charge a penalty or late fee.
Grace period is the extra time that the insurance company gives for premium payment. This period is usually 15-30 days. If the premium is paid during this period, the policy remains active and the insurance protection continues. If the payment is not made within this period, the policy may lapse.
The Grace Period is important in Life Insurance because it gives the policyholder an opportunity to maintain the validity of the policy despite a delay in premium payment. This period is usually 15 to 30 days and provides financial protection to the policyholder in case of financial stress or missed payment. During this time, the insurance cover continues and the policy does not lapse.
If you miss a Life Insurance Premium Payment, you have an opportunity to make the payment within the Grace Period. If the payment is not made even within this period, the policy may lapse, causing the insurance coverage to end. To reactivate the policy, you will have to follow the policy revival process, which may require additional fees and medical tests.
Yes, a Death Claim can be filed during the Grace Period. The insurance company will settle the claim as per the terms of the policy, but the amount of the outstanding premium may be deducted from the death benefit.
Yes, Life Insurance Policies are eligible for Death Claims during the Grace Period. The Life Insurance Company will pay the death benefit, but the amount of the outstanding premium and late fees will be deducted from the Death Claim Payment.
The impact on Death Claim Settlement during the Grace Period is that the insurance company pays the death benefit, but the amount of the outstanding premium is deducted from the death benefit. The validity of the policy remains during this period.
If the premium has not been paid and the policy has lapsed, the Life Insurance Claim may be rejected. However, if the policy is during the Grace Period, the Death Claim may be accepted but the outstanding premium amount may be deducted.
The Grace Period for Life Insurance Policies is calculated from the due date of the premium. It is usually a period of 15 to 30 days, which gives the policyholder additional time to pay the premium without the policy lapsing.
If the policyholder dies after the Grace Period and the policy lapses, the Death Claim may be rejected.
Yes, the Grace Period may be different for monthly and annual premiums. Generally, the Grace Period for annual premium is 30 days, while for monthly premium it can be 15 days, but it depends on the insurance company's policy.
The Grace Period for Life Insurance Premium usually ranges from 15 to 30 days, depending on the policy terms and frequency of premium payment (monthly, quarterly, half-yearly, yearly).
The Grace Period for Quarterly or Yearly Premium Life Insurance Policies is usually 30 days. This period gives the policyholder an opportunity to maintain the validity of the policy despite a delay in Premium Payment. This time frame may vary as per the Insurance Company's terms and conditions.
Single Premium Life Insurance Policies do not require a Grace Period as the Premium is paid in one go. There is no condition of regular payment in such policies, so the Grace Period is not applicable.
If the policyholder dies during the Grace Period, you should file a Death Claim. The insurance company will pay the Death Benefit as per the terms of the policy, but the amount of unpaid premium may be deducted from the benefit. Submit the Death Certificate, Policy Documents and other required documents for the claim process.
Yes, you can pay Life Insurance Premium after the due date within the Grace Period. This period is usually 15 to 30 days, depending on the frequency of Premium Payment. Paying during this period keeps the policy valid.
Yes, your Life Insurance Policy may lapse if the premium is not paid even after the Grace Period ends. When the policy lapses, the insurance coverage also ends and to reactivate it, a Policy Revival Process has to be followed, for which additional charges and terms and conditions may apply.
If you want to know whether your policy is within the Grace Period or not, you should check your policy bond. Your policy bond contains the rules regarding the premium due date and Grace Period. Apart from this, you can also get information in this regard from the customer care or agent of your Life Insurance Company.
To Death Claim during the Grace Period, the following documents are required: Death Certificate, Original Policy Bond, Death Claim Form, policyholder's Identity Card, Nominee's Bank Account Details and Medical Report from the Hospital or Doctor (if required).
However, depending on the circumstances of death, the Insurance Company may also ask for other documents and evidence. These documents simplify the Insurance Claim Process and prove helpful in getting quick claim payment.
No, not all Life Insurance Companies have the same Grace Period. This period usually ranges from 15 to 30 days and depends on the Insurance Company's policy terms, premium payment frequency (monthly, quarterly, yearly) and product type. The details are given in the policy documents.
Grace Period rules for LIC policies in India are generally 15 to 30 days. This period provides the policyholder with an opportunity to maintain the validity of the policy despite a delay in premium payment. This period may vary depending on the terms of monthly, quarterly or yearly payment. Relevant details are available in the LIC policy document.
Yes, you can revive your policy after the Grace Period ends, but for this you will have to follow the policy revival process. This may include paying additional charges, medical tests and outstanding premiums as prescribed by the Insurance Company. This process depends on the policy terms of the Insurance Company.
Generally, there is no penalty for paying premiums during the Grace Period. However, in some cases the Insurance Company may charge processing fees or interest. This fee depends on the policy terms and the rules of the Insurance Company. Paying during the Grace Period ensures that the policy remains valid.
The effect of the Grace Period on a Term Life Insurance Policy is that if the premium is paid within the Grace Period, the policy remains valid. If the premium is not paid after the Grace Period is over, the policy may lapse. In this case, the policyholder may have to go through the process of reactivation, which may involve additional fees and paperwork.
Life Insurance Corporation of India (LIC) provides several benefits tailored to meet diverse customer needs:
1- Financial Security: High insurance coverage ensures your family’s stability.
2- Bonus Payouts: Regular bonuses on eligible policies.
3- Loan Against Policy: Easy access to loans without traditional hurdles.
4- Riders for Enhanced Coverage: Options like accidental death, critical illness, etc., for added protection.
5- Flexible Payment Plans: Various premium payment options, including yearly, half-yearly, or monthly.
6- Special Benefits for Women and Non-Tobacco Users: Preferential rates for specific categories.
7- Digital Access: Manage policies online for convenience.
To know the status of the Premium of any Life Insurance Policy, one should check the Last Paid Premium Receipt. It contains information like the Policy Premium, Next Premium Due, etc. In the absence of a receipt, information in this regard can be obtained by using the company's online portal, contacting the company's customer care or the company's agent.
Life Insurance Corporation of India provides its policyholders the benefit of additional insurance protection of three months, six months and 12 months from the First Unpaid Premium (FUP) of the policy on continuous payment of premiums for two years, three years and five years respectively.
If the premium is not deposited in LIC policies, then you can get a Death Claim during the Grace Period. In LIC policies which have the facility of auto cover, you can get a death claim in case the premium is not deposited as per the policy rules.
If the premium of a LIC policy has been deposited continuously for two years, three years or five years, then you can get a death claim for three months, six months or twelve months respectively. Do get detailed information about these rules.
In the traditional plans of Life Insurance Corporation of India, if the premium of the policy is deposited for two consecutive years and after that due to some reason the premium is not deposited, then such policies remain eligible for Death Claim for the next 90 days from the First Unpaid Premium (FUP). To check this rule for the plans of other Insurance Companies, you should contact the concerned Branch Office.
In the traditional plans of Life Insurance Corporation of India, if the premium of the policy is deposited for three consecutive years and after that due to some reason the premium is not deposited, then such policies remain eligible for Death Claim for the next 180 days from the First Unpaid Premium (FUP). To check this rule for the plans of other Insurance Companies, you should contact the concerned Branch Office.
In the traditional plans of Life Insurance Corporation of India, if the premium of the policy has been paid continuously for five years and after that the premium is not deposited due to any reason, then such policies remain eligible for Death Claim for the next 12 months from the First Unpaid Premium (FUP). To check this rule for the plans of other Insurance Companies, you should contact the concerned Branch Office.
Not all Insurance Companies offer facilities like LIC, because each company's plans, premium structure, bonus and benefit terms are different. LIC is known for its reliable service, high claim settlement rate and bonus on policies. Other companies also offer customer-centric features, such as low premiums, flexible policy options and digital services.
So our suggestion for you would be to compare the plans of different companies before buying insurance and choose the right policy according to your needs.
If a life insurance policy is not in force at the time of death, even then that policy can be eligible for Death Claim. Provided that that insurance policy fulfills certain conditions-
- If the policyholder dies within the grace period.
- The Insurance Company gives concession in the context of Death Claim and the insurance policy fulfills the conditions of that concession.
- If an attempt has been made to revive the policy before the death of the policyholder and evidence of this is available.
If some premium of the policy is outstanding at the time of death of the policyholder, but the insurance policy remains eligible for Death Claim, then the remaining amount is paid by deducting the outstanding premium and late fee from the total amount of the Death Claim.
The auto cover facility is a facility that gets activated automatically from time to time under the insurance policy. This is usually available in life insurance policies, in which the insurance cover automatically increases or changes when the policyholder fulfills certain conditions.
Almost all Life Insurance Companies launch some such policies for their customers in which there are some special concessions or changes in the context of Death Claim after fulfilling certain conditions.
There may be some such policies in these which remain eligible for Death Claim even if the policyholder is unable to deposit his premium after the premium is deposited for a certain period. So there may also be some such schemes which provide the benefit of increased insurance cover after the premium is deposited for a certain period.
If a policy is deposited half-yearly and the premium is paid within 30 days from the grace period i.e. the First Unpaid Premium (FUP), then such policies remain eligible for Death Claim. If the policy premium is not paid even during the grace period then such policies may be ineligible for Death Claim. However, we would advise you to get detailed information in this regard before arriving at any decision.
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