5 Tips for Making Term Insurance Claim Settlement Easy for your Beneficiaries
When you opt for a term insurance plan, as an insured you want your insurer to never fall short of your expectations specifically at the time of claim settlement. Of course, it is quite natural to keep such expectations since the main aim to buy a term insurance policy is to provide financial support to your loved ones or beneficiaries in an event of your untimely demise so that they can meet all of their financial needs without any stress.
Term insurance claim settlement is the moment of truth and if in case, the experience at the moment fails, then this life insurance policy becomes a waste of money and worthless. That is why it is very imperative to choose the best life insurance company who is providing a high claim settlement ratio (CSR) along with timely repayments. It is basically the ratio that shows the life insurance company’s reliability of the term life insurance claim settlement.
Claim settlement might seem like the complete liability of the life or term insurance Company. There are, however, a few things that you can also do from your end in order to make the term insurance claim settlement process smooth and hassle-free for your loved ones.
Here are 5 tips to make claim settlement easy for your beneficiaries:
1. Know Your Term Insurance Policy Well
The first tip which you need to keep in your mind while buying the term insurance policy is that you must know and understand completely that what is being offered to you. Go through the insurance documents and read the offer well. Before signing on the dotted line, make sure you understand features, inclusions, exclusions, and clauses of the policy that you have decided to pay for.
2. Make Accurate & Full Disclosure
It is imperative that you remain as honest and accurate as it is possible at the time of filling up an insurance application form. It is highly suggested that you cross-check and review all the details that you have filled in the form in order to make sure that it is error-free.
Another most important thing is that you should upfront about your health conditions, drinking, and smoking habits (if you have, any). Because even a minor mistake or error in the form can become a hurdle in completing the term insurance claim settlement process. So, avoid withholding any information about your health & lifestyle to make the claims settlement process smooth and simplified for your beneficiaries.
3. Update Your Policy Details Periodically
Even a term insurance policy is considered as a long-term commitment that you make for a better and secure future of your loved ones and certain things are bound to change with time. Henceforth, it is suggested that you keep updated your policy periodically so that it can include your latest details. For example, any changes in the name of nominees, contact details, addresses, your lifestyle or your habits, etc must be notified to the insurers. Also, do not forget to maintain the proofs of the same.
4. Educate the Nominee about the Policy
Once you fully understand the policy and have kept all the information in place, your next responsibility to keep the nominees informed. Meaning that, the nominees must be aware of all the policy details, the sum assured, and the term insurance claim settlement process. In addition to this, it is also important for the nominee to be aware of all the exclusions and clauses of the policy because he/she may have to file a claim upon your untimely demise. A nominee who does not have an idea about the details of the policy is likely to make errors and slow down the claim settlement process. So, be sure you educate the nominee about the policy.
5. Keep All the Important Documents in One Place
A term insurance cover is your guard against life uncertainties. Henceforth, it is imperative to be prepared always in advance. You should keep all the insurance documents safe and organized in one folder. Also, let the nominee know where you have kept them. It would be great if you could label and categorize these important documents so that the nominee can go through them easily whenever required.
There are plenty of ways that can ensure that the term insurance claim settlement ratio is smooth and hassle-free for your loved ones. If you follow the aforementioned tips, you are unlikely to make any error or find this claim settlement process tedious and time-taking.