Types of Life Insurance Claims
Types of Life Insurance Claims, There are several types of claims that can be made on this life protection product.
a. Claim Maturity
Claims due on life insurance products can occur when the policyholder survives until the end of the policy period.
The sum insured will be paid if the insured party is still alive until the end of the insurance period or has never made a claim at all for a critical condition and the policy is still active.
b. Death Claim
A death claim is made when the policyholder/beneficiary dies within the current policy period which can be submitted by the heirs or applicants mentioned in the policy. Types of death claims include due to illness or accident.
This death claim can arise when the beneficiary or applicant named in the policy has died while the policy is still valid. However, a life insurance claim may occur early when the policyholder dies within one year of the policy commencement.
There are several documents required when making a death claim, including the following.
- personal identity
- proof of family relationship
- policy document and policy number
So, it should be noted, that the document that is not required when making a death claim is an education certificate.
c. Claim Early
Early claims can be made against life insurance. Early claim occurs when the policyholder dies within one year of the policy commencement. This claim can arise when the policy has generated a cash balance, while the policyholder terminates the insurance agreement. In other words, the beneficiary or the insured party can redeem the policy or return the cash balance.
d. Survival Benefits
In some types of life insurance policies, insurance claims also cover the sum insured for the risk of permanent or partial disability experienced by the insured. The benefits of this protection also include protection against critical conditions (if it is covered by a policy).
This claim is a form of protection for the insured party from various forms of disaster risk that may occur in the future. Examples of benefits from this life insurance claim, for example, the head of the family as the insured party dies due to an accident, suffers a permanent or partial disability, or any cause that causes him to lose his livelihood.
Thus, this life insurance claim is useful for protecting the survival of the family or heirs if left by the policyholder or when the policyholder has lost his livelihood.
From the list above, we can see that bonus benefits and premium interest are not a type of claim, but are a form of benefit that can be felt by life insurance policyholders.
How long does it take to process a death insurance claim?
Different from health insurance claims which do not take long for reimbursement or disbursement, life insurance claims can only be disbursed when the policyholder dies or in certain cases, depending on the agreed clause in a life insurance policy.
Life insurance claims for cases of death can generally be made immediately after the policyholder dies for up to 90 days (3 months), starting from the date of death. If a new death claim is submitted after the 90-day waiting period has elapsed, the heirs are required to make a chronology letter regarding the reason for the delay in submitting the claim.
However, it should be noted, both the length of the waiting period until the reporting delay is also returned to the policies of each company and existing insurance products.
The Role of Life Insurance Agents in the Insurance Claim Process
As a professional life insurance agent, you must be able to do the following things.
- explain the details of the product and the benefits that will be received
- bridging and assisting the claim process
- say anything that makes the claim can't come out
- explain the function of the policy related to the claim to be made
- explain what things must be done when making a claim
- make an illustration of benefits and claims
- provide hospital data in collaboration with the insurance company (if needed)