Steps to Ensure Smooth Term Insurance Claim Settlement
Term insurance plans are an absolute must for individuals of all age groups in order to financially safeguard their families and loved ones. However, in order to utilize the plan, it is equally important to be aware of the term insurance claim settlement process of the plan. People who invest in term insurance or life insurance products expect financial cushioning along with intangible peace of mind.
With the right term insurance plan in place, the family members of the insured will not have to suffer during phases of financial hardships. These plans reap death benefit in case of any unfortunate event that might lead to the demise of the policyholder. However, very often nominees of the policy face the issue of claim rejection that is agonizing since the family of the policyholder is left bereaved financially unequipped to cover the loss.
A common reason behind claim rejection is blur understanding of the policy details due to ignorance or carelessness while buying the plan. Proper knowledge about the nuances of term insurance claim settlement coupled with simple few precautions can help the nominees of the policy to avoid the hassle of claim rejection. A firm understanding of the policy guidelines will not decrease the probability of claim rejection but it will also make the overall process simpler and easier.
Disclosure of Information
One of the most common reasons that lead to the rejection of a claim is incorrect information stated in the application form. While filling up the application form for any insurance product it is extremely important to fill in the right information and disclose all vital facts for processing of claims like age, medical history, smoking status, lifestyle habits, etc.
The majority of the rejected claims are a result of wrong information provided by the buyer which causes immense trouble and hassle for the claimant. Although disclosure of correct information might result in an increase of payable premium, it makes the overall term insurance claim settlement process very smooth.
Missing Out on Premium Payments
The most important factor in the case of term insurance plans from the perspective of an insurer is the payment of premiums. In order to ensure that your loved ones receive the cover amount, it is extremely vital to make consistent payment of the premiums. After purchasing the policy one should not miss out on any premium payment.
However, if the insured party is unable to make payment of premiums due to any reason the insurance company should be informed before the policy lapses. Most of the insurance providers consider genuine circumstances and help the customers by making provisions like paid-up policies.
File your Claims at the Earliest
In order to ensure hassle-free term insurance claim settlement in the UAE, it is highly recommended that claimants file their claim as early as possible. Some of the insurance providers in the UAE have a pre-decided period for filing claims i.e. (60 days to 90 days). The claimant can file the claim application online or visit the nearest branch of the provider and file claim application along with necessary documents. Claimants can call the toll free helpline of the insurance provider or visit the website to understand the procedure. A tip to accelerate the pace of claim processing is to state the contact details of the claimant on the offline/online claim application.
Although there are a plethora of documents required to get your term insurance claim processed in the UAE, the death certificate is the most crucial document. Ideally, claimants should attach a copy of the death certificate with the claim application to ensure speedy processing of the claim. The list of documents required by the insurance provider is listed on the policy papers or website of the provider, claimants can refer to the list for guidance. While filing the claim application for term insurance in the UAE claimants should attach all the necessary documents in one go to facilitate smooth and speedier processing of the claim.
Since the entire documentation process is to be carried out by the nominee of the policy, in case of death due to illness or ailment, the claimant should submit all the documents and bills from the hospital. Submitting all the medical documents in one go will reduce the procurement period of documents by the provider. Apart from the documents mentioned in the list, claimants are supposed to submit original policy papers, policy cards, claim form, ID proofs of the policyholder and the nominee, bank statements and account details along with a copy of FIR if required by the provider.
Read the Policy Papers Thoroughly
As mentioned earlier a common reason behind the rejection of claims in the UAE is lack of proper knowledge about the policy and claim processing. It is extremely vital that the insured party has a firm understanding of each and every clause mentioned in the policy papers. Furthermore, in case of any doubts, one should clear all the doubts regarding claim processing and clauses of the term insurance plans in the UAE. In case the policyholder has opted for additional riders to enhance the utility of the plan one should go through all the clauses mentioned in the policy papers. Thoroughly going through the policy papers will make sure that the policyholder is well aware of the inclusions, exclusions along with the benefits of the policy.
Informing the Nominee
As the policyholder, it is your responsibility to keep the nominee informed and aware of the clauses and benefits of the policy. All policy-related documents should be kept safely within the knowledge of the nominee, so as to avoid any hassle at the time of filing the claim.
Term insurance plans are pure risk protection policies that are available at affordable prices in the UAE. The precautions and tips mentioned in the article will help you to ensure a smooth term insurance claim settlement experience. Claim processing is the key to financial support that your family would need in your absence.