All You Need to Know When Claiming ULIPs
When it comes to insurance policies, isn’t it best to know the claim process beforehand? The last thing you would want is for your loved ones to struggle with getting the deserved lump sum benefit in the event of a mishap. ULIPs offer you both death and a maturity benefit that have a different claim settlement process.
Here, you can understand how your beneficiary can file a death claim and the steps to claim the maturity payout of your ULIP plan.
How to Claim Death Benefit Under ULIP Policy?
In the event of an unfortunate mishap, the beneficiary can file for the death benefit offered by the Unit-Linked Insurance Plan and claim the proceeds. With the following steps, you can complete the claim settlement process without any hitches:
Step 1: Intimate the insurer
The beneficiary of the ULIP policy needs to inform the insurance company about the policyholder’s demise as soon as possible. A quick intimation shall help the insurer to start the claim process immediately. As the beneficiary of the plan, you must have the policy number, name of the policyholder, name of the beneficiary, cause and place of death, date of death, etc. You can get the claim settlement application from the insurer’s nearest branch or download it from the company’s website.
Step 2: Collect the necessary documents
Along with the claim application form, there are some crucial documents that you must attach. So, keep the below-mentioned documents ready:
- Proof of ID and address of the beneficiary
- Death certificate of the policyholder
- Proof of age of the policyholder
- Original insurance policy papers
- Discharge certificate
- Medical certificate (depending on the insurance requirement)
- Postmortem report
- Hospital records (in case of death due to an illness)
- Step 3: Submit the claim application form
After ensuring you have all the required documents, you can now submit the claim settlement form at the earliest. If the insurance provider needs additional information or documents to support the claim, the company will intimate you.
Step 4: Claim settlement process
According to the IRDAI (Insurance Regulatory and Development Authority), your ULIP claim needs to be settled within 30 days of receipt of all documents. In case the company wants to investigate the death of the policyholder, the settlement period cannot be extended to more than 180 days. If the insurer fails to settle your ULIP claim within the given time limit, then they shall be liable to pay interest on the death benefit.
How to Claim Maturity Benefit Under ULIP Policy?
As ULIP is a policy with life cover plus an investment component, the policyholder can enjoy the perks of both death and maturity benefit. Thus, as you come closer to the maturity of your insurance plan, you shall receive a lump sum payout along with any loyalty ULIP benefits. Go through the below steps to learn how you can claim the amount on maturity:
Step 1: Intimation
The insurance provider will send you an insurance discharge form and an intimation a couple of months before your policy expiry date. The form will contain information related to the maturity date and the details of the payout. You need to sign the discharge form and send it back to the company. In case your insurer doesn’t send you the discharge form, it might be available on the website.
Step 2: Necessary documents
You need to attach some documents along with your discharge form, which can vary from one insurer to another. So, you can keep the mentioned documents handy:
- Original policy papers
- Cancelled cheque
- Proof of ID
- Copy of bank passbook
- Step 3: Form submission
After ensuring all the required details are filled in and the documents are attached, you must send it to your insurer within the specified period. Your insurance provider will then process this information and your maturity benefit shall be paid out on time. If any additional details are required, the insurer will intimate you.
With this, you must have understood how to file a ULIP claim with some simple steps. To calculate your maturity benefit for better planning, check out the ULIP plan calculator available online. For simpler ULIP tax benefits estimation, you can also make use of tax calculators. Hurry up and secure your loved ones with a life cover today!