What Types of Claims Can You Make with Life Assurance Policies?

So you have paid your dues – you religiously paid the premiums for your life assurance policy. What do you get in return? Here are some kinds of claims for life assurance policies:

Death Claims

Upon the death of the insured, the beneficiaries will receive either the minimum guaranteed amount or the cash accumulation in the policy, whichever is higher. There are even some policies that payout the sum insured (minimum guaranteed amount) plus whatever bonus earnings/dividends have been earned.

Undoubtedly, the event that caused this claim is a grievous time for the family, but they are more or less assured of financial stability with the proceeds of the insurance.

To make a claim, you are usually required to submit the following:

  • Original death certificate
  • Documents to prove identity (both of deceased and claimant/s) that will also outline proof of relationship
  • Original policy document
  • Additional documents that may be asked include the statement of the physician who treated the deceased at the time of death

Once everything is in order, the payout should be received after a reasonable length of time. Please also note that the policy must have been active (with payments up to date). If there are some premiums due (that are left unpaid), these will be deducted from the proceeds.

Maturity Claims

As a policyholder, you will receive either the minimum amount guaranteed or the cash accumulation, whichever is higher. There are also some policies that provide both the sum insured plus additional bonus/dividend earnings.

When making a claim for the maturity, you have the following options:

  • Receive the proceeds of the matured policy as a lump sum.
  • Receive the proceeds in monthly installments, where the insurance company designs the payouts as an annuity.

    A life annuity guarantees monthly payments while the recipient is alive. Meanwhile, an annuity certain pays out for a specified number of years. It the recipient does not survive until the end of the payment period, the payments will usually go to his heirs/beneficiaries.

When making a claim, all you need to do is bring your policy to the claims department, sign some forms for the claim and receive your check. At this time, life insurance coverage (on that specific policy) ceases.

Policy Surrender Claims

Sometimes, an insured would like to surrender the policy, meaning, since he can no longer pay for the premiums, he has the policy terminated and will receive the surrender value at the time of surrender.

Before you surrender a life assurance policy, you must think twice. For one, you will be losing life insurance cover and you may be faced with higher rates the next time you buy life insurance. Also, if your health makes a turn for the worse, you may even be denied coverage.

These are three ways in which you or your beneficiaries can enjoy your investment in your life assurance policy.

To protect your loved ones for less, fill the form on the right to get your life insurance quote.