Making the necessary updates to your life insurance policy can keep it up to date so that the payout goes to the right people when it's time, but what exactly happens to your policy once you have died? Here is a breakdown of the claims process.
Placing a claim
Understanding how the claims process works can make it easier for you and your loved ones to place a claim. Having the necessary documents in place and up to date can also make the process as smooth as possible, which is why it is crucial to inform a loved one you trust about your policy and how they can place a claim when the time comes.
While most people tend to view the terms and conditions of a policy as red tape set to bore you to death, it's your lifeline to help you understand the legal implications that come with you signing your name on the dotted line.
It also breaks down what will happen once you have placed a claim and how long it will take for your policy to be paid out. Always make sure to carefully read this. Your loved ones will need the necessary documents to approach an insurer to begin the claim process.
Documents that are needed
The claim process can differ from insurer to insurer. Checking with your insurer, on their website or the relevant documents that have been sent to you can give you clear information on what is needed to begin the process. For MiWayLife clients looking to make a claim, you can find the information here. The documents that are needed to start the claim process 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
Different documents may be needed based on whether the death was accidental or natural.
How long will it take?
This will depend on the claim process and how someone has passed away. However, this can range from 24 - 48 hours or longer should there be an investigation into the policyholder’s death. Keep in mind that not having the necessary documents to begin the claim process can make the payout process longer or even leave the amount unclaimed.
Checks that you need at the end of each year
Making sure that your policy is kept up to date can make the process one that is smooth for everyone involved. It's ideal to always check your policy every year to make sure that it's updated. This means checking that the necessary beneficiaries have been added or removed, that your premiums are up to date and accurate information such as I.D numbers, along with relevant information is up to date.