How To Claim The Death Proceeds?
When someone passed away, it is a sad thing, but we still need to claim what he left to us.
When a person purchases a life insurance policy he is called the policy holder or insured, the person who in future will receive the compensation upon the death of the insured is called the beneficiary. It is important that after the insured purchased a policy he needs to inform the beneficiary because the beneficiary will be the one who is legally and eligibly to receive the compensation from the life insurance company.
Minimum requirement and proof
If the insured died, the beneficiary needs to make a report to the police and obtain a death certificate, because this is the proof to show to the insurance company that the insured has passed away, normally it takes a week for most of the countries, this is to proof that the deceased has really passed away. The insurance company will give the beneficiary a claim form to fill, this will normally take a couple of weeks depend on the efficiency and the evidence. When the confirmation is done the beneficiary can collect the proceeds, it is normally in one lump sum or annuity, depends on what type of policy, but in most cases, full amount will be paid.
If the insured’s death is suspicious or any written statement was falsely made by the insured during the time he purchased the policy, for example he had an illness or symptom but did not confess in the statement, the insurance company may investigate the circumstances of his death before deciding whether to release the proceeds or pay the claim.
Therefore when buying a policy the buyer needs to tell the truth when filling in the form, any claim rejection may happen in future if the insurance company detected any suspicion. After all, honesty is the best policy.
