The process of claiming a life insurance policy upon maturity is very simple. Then the policy comes near to its maturity date, the insured person will be receiving an intimation by the insurance company to submit all the necessary documents for processing the claim. Today I will discuss as to how the claim process of a policy works.
For a life insurance policy company offers two types of claim benefits. One type is claim on death benefit or claim on maturity benefit. A death benefit is a claim that is claimed after the policyholder’s death and within the policy period. Hence, if the policyholder survives the period of the policy term, in that case the life insurance policy offers claim on maturity benefit providing the policy is active and all the premiums have been paid by the policyholder.
How To Make a Maturity Claim?
It is mandatory for a policyholder to know the maturity date of his/her life insurance policy so that he/she can file a maturity claim on time. On the other hand, the insurance company also informs the policyholder much before the policy’s maturity date so that he/she can start the claim process. A maturity claim process must be initiated at least one month before the policy maturity date. The policyholder is asked to send an application along with all the necessary documents to the insurer company so that the policy claim is settled as soon as the policy matures. Below are the following documents required to be filed at the time of maturity claim:
Policy Discharge Form
- A policy discharge form is available on the insurance company’s website. you can easily download or else to can go to the insurance company office for obtaining the form. The policyholder must fill the form and sign it. Two witnesses Signatures are also required along with a revenue stamp on the form.
- Original policy document
- Cancelled cheque and NEFT mandate form
- KYC documents like Id proof, address proof, PAN and Aadhaar Card
- The duly filled policy discharge form and the documents must be submitted to the insurer company at least before 7 working days from the date maturity for claiming the policy without any delay.
Processing of claiming
- On receiving the policy claim discharge form and all the necessary documents, the insurance company checks and verifies all the documents. After the verification process is completed, the insurance company starts processing the claim and makes payment to the policyholder. After the policy’s maturity date, the payment is directly transferred to the policyholder’s bank account. A policyholder can also request for a post-dated cheque which can be sent to his address. This cheque can be deposited to the policyholder’s bank account for encashing, but it is possible only after policy maturity date
Points to Remember
- Maturity benefits can be only claimed on policies with survival benefits or bonuses, unlike term insurance plans that do not offer any maturity benefits to the policy holder. But now the term insurance plans are come with a return of premiums feature, where the policyholder is benefited with paying all the premiums back on survival after policy tenure is completed. Please note that this feature is available in polices with a higher premium.
- In that case if the policyholder dies after maturity of the policy, but before claiming the maturity then the claim is considered a maturity claim and the amount is paid to the legal heir of the deceased policyholder.
Features of Life Insurance policy with maturity benefits
- Maturity benefit is mostly the multiple premiums paid throughout the policy tenure and if any bonus the insurance company pays to the policyholder. If there is any bonus is applicable it is added at the end of the policy term.
- A life insurance policy with a maturity benefit and has all the features of a regular life insurance policy. Will prove to be helpful in building a corpus amount for future goals on a very affordable cost.
- A life insurance policy not only protects your family in your absence but also has the benefit to enjoy the amount at the maturity if you survive the policy tenure.
Conclusion
If a policyholder has survived the policy tenure, policy maturity claiming becomes seamless process, provided all the premiums of the policy are paid, and all the necessary documents are in place. The insurance company informs the policyholder about the maturity claim two months maturity date, giving him/her enough time to initiate the documents for the claim process so that the maturity amount can be paid on time.
FAQ
Question – how to claim a life insurance policy upon maturity?
Answer – The policyholder is asked to send an application along with all the necessary documents to the insurer company so that the policy claim is settled as soon as the policy matures.
Question – What is a policy discharge form?
Answer – the policy discharge form is a form given by the insurance company to the policyholder for claiming the maturity upon the policy tenure is complete.
Question – What is life insurance policy with maturity benefit?
Answer – A life insurance policy with a maturity benefit is a feature of a regular life insurance policy which provide building a corpus amount for future goals on a very affordable cost also has the benefit to enjoy the amount at the maturity if you survive the policy tenure.
Question – Dose Term insurance policy comes with maturity benefits?
Answer – Yes, some Term Insurance policies come with maturity benefits. The premium for such policy is higher the regular Term insurance policy.
