Given the nature of term insurance, you will be out of the picture at the time of claim settlement. So make it hassle-free for your nominee If your policy had lapsed earlier, but now you would like to continue the policy, you can revive the same policy as per the terms and conditions of your insurance company.

By AP Singh & Pallavi Seth

Having an adequate life insurance cover for your loved ones can only be useful when your claim gets processed smoothly. Follow these tips to ensure the claim process is smooth for your heirs:

Provide correct information
Insurance contracts are based on the principle of utmostgood faith. If you provide incorrect information or conceal any material fact, even if you have paid all the premiums, the insurance company can reject the claim if it comes within two years of purchase or revival of the policy, whichever is later.

Pay your premiums timely
Your policy will lapse after 30 days of non-payment of premium, i.e., grace period. If the claim comes after the lapse of the insurance policy, the insurance company will not pay the claim. If your policy had lapsed earlier, but now you would like to continue the policy, you can revive the same policy as per the terms and conditions of your insurance company.

Keep all documents in one place
Given the nature of term insurance, you will be out of the picture at the time of claim settlement. Hence, keep your policy documents in a safe place and inform your nominee about it. You can create an e-insurance account, store all relevant documents in digital format and share the account details with your nominee.

Nomination
If the nominee dies while the insured is alive, the nomination becomes null and void. The policyholder can change the nomination. However, if the nominee dies after the insured’s death but before receiving the claim amount, the amount would then be paid to the legal heirs. In case of the death of a nominee, you should change the nominee as soon as possible.

Make a Will
When you die without a Will, the intestacy laws apply based on the personal law that applies to you. These laws of intestate succession vary greatly, subject to whether you were single or married, or had children. A Will helps nominees/ legal heirs to get easier access to the assets of the deceased.