Purpose of life insurance is to pay the claim to nominee in case of death of life insured and pay the maturity claim to Proposer in case of survival.
Life insurance is also a saving instrument which guarantees to fulfill the purpose of insurance. Ram wanted to save money for higher education of his 3 year daughter Surbhi. Ram decided to save Rs 1 lakh per annum in a 15 year endowment insurance plan. Plan promised to pay Rs 14 lakh plus accrued in case of death and Rs 14 lakh plus bonus in case of survival.
Procedures of filing Maturity Claim in Life Insurance
It is necessary that family is aware about portfolio of life insurance so that family is able to file the claim. Each policy holder should maintain record of all life insurance policies and must make nominee in each policy.
When maturity of life insured happens then life insurance company intimate the Policy owner at least 90 days in advance.
Insurance Company confirm the Bank details where amount is credited. Insurance Company may also demand the following details as mentioned below:-
- Policy Document
- Bank Details with cancelled cheque having name of Policy owner. In case , name is not there then bank account statement is required with latest entry.
- KYC of Policy owner
- Signed voucher along with stamp
- Details of assignment if policy is assigned and details of assignee. (i) If policy is assigned, then maturity amount will be paid to the assignee. (ii) If there is a loan on the policy then maturity amount will be paid after adjustment of loan.
There can be different type of Policies and bonus system. Demand a settlement letter from the Insurance company for total computation as given below :
- Guaranteed Sum Assured
- Accrued Bonus for full duration
- Terminal or loyalty bonus
- Check whether bonus was simple reversionary or compound reversionary
- If it is a ULIP then check NAV of maturity date. If market is down on maturity date then you can opt for settlement option by increasing your maturity date so that you wait for market to rise.
Ask for detailed report then agree for your maturity. Most consumers just accept the maturity amount without checking computation.
Insurance Samadhan can help you in final computation.