How to proceed for a death claim insurance if you are a nominee? Find out

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I have an 11-year-old policy. Is it possible to change the premium payment date?

Once a policy has been issued, its premium due date cannot be altered. However, you can change the frequency of premium payment according to your convenience and financial goals. You can opt for yearly, half-yearly, quarterly or monthly premium payment frequency at any policy anniversary during the premium payment term. However, this is subject to availability of a frequency in that product. 

My friend's father passed away two years ago. The former has discovered that his father had a life insurance policy for which he is the nominee. What is the process of making a claim for such a case? 

As your friend is the nominee, he can notify the claim to the insurance company by submitting the mandatory documents. These would include claim intimation form, policyholder’s death certificate, original policy bond, nominee’s KYC proof (ID and address proof) and a cancelled cheque or bank account passbook of nominee for NEFT payment. There might be cases where the insurer requires additional documents like treatment or hospitalisation records, such as discharge summary, medical investigation reports, etc. (if applicable). An insurer settles the death claim within 30 days of receipt of the last necessary documents. If the claim requires investigation, it may take up to 120 days to settle it.

I am 37 years old and a working professional. I am willing to purchase a Rs 1.5 crore term policy but am unable to decide on the duration. What should be the ideal premium paying term?

Picking the right policy period can be complicated. A short duration will defeat the purpose of term insurance, while a very long one  will result in you paying more premiums than you should. Ideally, the period of a cover should correspond to the age until which you expect to keep earning, or will likely have liabilities or dependants. Both the sum assured and the duration need to be determined cautiously by taking into account one’s life goals, current age, expected age of retirement, cost of living of dependants, outstanding loans, current and future cost of education of children and other life goals, and so on. A Human Life Value calculator is a tool you can use to arrive at the appropriate amount of life cover and duration.  you should opt for to keep your family’s life goals on track.

I have a three-year-old daughter who has just started going to school. I want to make investments for her higher education and am thinking of investing in a unit-linked insurance plan (Ulip). Do you think it’s a good idea, given the current volatile market conditions, or do you suggest I should invest in an endowment plan?

It is great to see that you have started planning early for your child’s higher education. You should choose an investment product on the basis of your life goals, risk appetite, the amount you want to invest, and the timeframe within which you want to invest. If you have a low risk appetite, and are looking for stable returns, then opting for a traditional policy is suitable. On the other hand, if you have a higher risk appetite and want to take advantage of market-linked returns over the long term, then investing in Ulips is preferable.

Ulips offer the option of participating in market-linked returns and can help build an inflation-adjusted corpus for your child’s education over the long term. At the same time, they can provide a life cover that will secure your child’s life goals in case you are not around.

The writer is MD & CEO, Bajaj Allianz Life Insurance. The views expressed are the expert’s own. Send your queries to yourmoney@bsmail.in




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