The procedure of claiming maturity is straightforward. When a policy nears its maturity date, the insurer notifies the policyholder to submit all required paperwork. Let us investigate the life insurance claim procedure.
There are two sorts of advantages from a life insurance policy. You have the option of claiming a death benefit or a maturity benefit. A death benefit is paid out if the policyholder dies within the policy’s term. However, if the policyholder survives the policy term, the life insurance policy only provides a maturity benefit provided the policy is still in existence and all premiums have been paid in full.
How Do You File a Maturity Claim?
In order to submit a maturity claim on time, a policyholder needs keep track of the maturity date of his life insurance policy. Before the policy’s maturity date, the insurance company notifies the policyholder that the claim procedure has begun. A maturity claim should be filed at least one month prior to the maturity date. The policyholder must submit an application to the insurer together with all relevant documentation so that the claim may be paid as soon as the policy matures. The following papers are necessary to submit a maturity claim:
Form for Policy Discharge
The insurance company’s website has a policy discharge form. It is simple to download or receive from the insurance company’s office. The policyholder must complete and sign the paperwork. Two witnesses’ signatures are also necessary, as well as a revenue stamp on the form.
- The first policy paper
- Cheque cancellation and NEFT mandate form
- KYC paperwork include identification, residence proof, PAN, and Aadhaar card.
For the claim to be completed without delay, the policy discharge form and supporting documentation must be sent to the insurer at least 7 working days before the maturity date.
Processing of Life Insurance Claim
The insurance company initially checks all of the paperwork after receiving the policy discharge form and all of the documentation. Once the claim has been verified, the insurance company will process it and reimburse the policyholder. Following the maturity date of the insurance, the money is instantly sent to the policyholder’s bank account. A insured might also request that a post-dated check be sent to him. This check may be placed into a bank account to be cashed, but only once it has matured.
- Maturity benefits may only be claimed on policies that provide survival benefits or bonuses, as opposed to term plans, which do not include any maturity benefits. However, there are now term plans with a return of premiums option, in which the policyholder receives all premiums returned if they survive the insurance duration. This option comes with a larger price tag.
- In one situation, if the policyholder dies after the policy matures but before the maturity claim procedure is completed, the claim is deemed a maturity claim alone, and the sum is paid to the dead policyholder’s legal heir.
Life Insurance With Maturity Benefits Features
- The majority of maturity benefits are the many premiums paid over the policy lifetime plus any bonus given out to the policyholder by the insurance provider. Any eligible bonus is applied at the conclusion of the insurance period.
- A life insurance policy with maturity benefits includes all of the advantages of a standard life insurance policy, as well as the ability to develop a corpus for future aspirations at a relatively low cost.
- It not only protects your family in your absence, but it also allows you to receive a considerable sum at maturity if you survive the policy’s term.
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If a policyholder lives the policy term, collecting a maturity benefit is a simple procedure as long as all premiums are paid and all essential documentation are in order. The insurance firm notifies the policyholder two months before the maturity date, allowing him enough time to commence the claim procedure and receive the maturity payment on time.