Having life cover is banking on the promise that your insurer will pay out what is due when it is due. Understanding how the claim process works can lead to less disappointment and a smoother transition for your loved ones.
We break down what you need to know when it comes to understanding the claims process.
Honesty is the best policy
Like any relationship, you get the best results when you put your best foot forward by being honest. The same goes for taking out a life cover with an insurer. Being honest from the start about your medical history and your lifestyle leads to a relationship that is beneficial for you in the sense that you will be able to get the right cover for you and your loved ones. Not only will the claim process be smoother, but it will also give you peace of mind knowing that your loved ones are protected when you are no longer around to do so.
Underwriting your way to a good policy
Before you can have a policy under your name, you will undergo an underwriting process. Your insurer or an agent will ask you a range of questions to ensure that you are given the right policy for the right amount. No trick questions included.
Questions that your insurer will ask will be things such as your age, gender, height, weight, medical history, and any lifestyle choices that can affect your health such as smoking or drinking. It's crucial to share any diagnosis that you have been given by a medical professional to avoid being guilty of non-disclosure. Have a look at our blog post that helps explain how you can avoid being guilty of non-disclosure.
What happens after a claim has been placed?
Terms and conditions may appear like red tape set to bore you to death, but this is your lifeline to help you understand the legal implications that come with you signing your name on the dotted line. It is also a break-down of what will happen once you have placed a claim and how long it will take for your policy to be paid out.
Most insurers will pay out a funeral benefit to help you cover the funeral expenses within 24hrs. The remaining life cover amount is released a bit later due to most insurers investigating whether the policy holder passed away under normal circumstances. This differs from insurer to insurer which is why it is vital to check with them.
Required documents to process a claim
The minimum requirements that are needed to process a claim are:
A fully completed claim form
A certified copy of the Death Certificate
A fully completed DHA-1663 form
Certified copies of the ID of the main life or of all the beneficiary(ies)
3 months bank statements for all beneficiary(ies)
Police report in case of an unnatural death
This will differ based on whether the death was accidental or natural. Remember to call your insurer to understand how the process works and what process your beneficiaries need to follow when it comes to placing the claim.