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The situations change during different stages of life, and so does the security requirement. To secure ourselves and our possessions, we get numerous insurance options in the UAE. Among those, life insurance is an important investment to deal with uncertain situations. It ensures that the policyholder’s family is taken care of if he/she dies untimely or falls critically ill.
In an insurance contract, the insurer provides security to the policyholder in exchange for a premium. The policyholder can pay this premium in installments or a lump sum depending on the company and the insurance plan.
It is a known fact that we remain insured until we pay the premium but what happens when the policyholder dies during the tenure of insurance, and how exactly does the insurance work when you die in the UAE. The following article details the functioning of the life insurance plan before and after the policyholder’s death.
Life insurance is a contract that offers security against a future mishap that can potentially create a sudden financial requirement to tackle the situation. In such cases, a life insurance plan ensures that you have adequate money to deal with emergencies. Depending on the protection requirements, the insurance plans offer comprehensive and customised security.
In an event resulting in the policyholder’s death, the beneficiaries or the family members can raise an insurance claim to get financial assistance. The insurance benefits assure the nominees against financial hardships that may arise due to the loss of the sole breadwinner. Additionally, the nominees may choose a lump sum payout or opt for installment payment, depending on their requirements.
Before getting their claim settled, the family members need to file a claim along with all the supporting documents in the specified time. The insurance company verifies the details and then pays the insurance benefits.
The death benefits, thus obtained, can be used to pay the mortgage, education expenses, loans and help in maintaining the lifestyle.
What happens to your life insurance policy after your death depends on the type of insurance you own. Since the life insurance covers the untimely death, your insurer would pay your beneficiaries the death benefits and later terminate the policy. If you own a term life insurance plan in the UAE and die within the insurance tenure, your nominees or the family members can file a claim to receive the death benefits. If your death occurs after the policy tenure, the insurance provider does not pay any insurance benefits.
In the case of whole life insurance, your family or the nominee get insurance benefits no matter at what age you die. Most whole life insurance in UAE covers the individual up to the age of 100 years.
If the policyholder and the person insured are separate individuals, then the policy does not terminate or pay any benefits and the individual insured needs to pay the premium. If the person insured is the policyholder, then the company pays death benefits upon his/her demise.
Losing someone is devastating, but the burden that follows is even worse. Therefore, after the policyholder’s demise, you need to file a life insurance claim as soon as possible. Filling a claim is not difficult in the UAE, and the insurance company also try to make your settlement process hassle-free. In a few cases, the insurance claim may involve a legal angle making the process cumbersome. You can contact our helpdesk, and our team of professionals will guide you through the settlement process. Following are the steps involved in filing a life insurance claim in the UAE.
As mentioned earlier, the requisite documents are case-specific and vary from individual to individual. You need to consult your insurance provider detailing the incident and make a note of all the documents your insurer asks for, depending on your case. The following are the mandatory documents you need to submit while filing your life insurance claim application.
For accidental deaths, the individual needs to submit additional documents as mentioned below:
Note:- The insurer may ask for additional documents related to nominee identification and the policyholder’s details. You need to submit all the important documents during the insurance claim to have a quick and convenient claim process.
Filing a life insurance claim during an unforeseen event is quite tough. You need to be in control mentally and emotionally. However, while filing a claim, you need to ensure a few things for a hassle-free claim process.
Life insurance is designed to ensure you and your family during unforeseen events. When you die, the insurance company pays your beneficiaries the death benefits. For receiving the death benefits, the dependent members or the nominees need to file a claim. There are several steps involved in the life insurance claim process, and you need to follow them carefully for having a smooth claim settlement. Additionally, it is crucial to provide all the details related to the case to your insurance provider.
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