Term insurance is a kind of life insurance that offers protection for a specific period of time, or term. The insurance company pays the selected beneficiaries a death benefit if the policyholder person passes away within the duration of the policy. It aims to provide monetary security for a specific period of time—10, 20, or 30 years, for example—and is frequently used to pay for debts like mortgages, schooling bills, or replacement income for the one who were dependent on the policyholder.
Documents Needed
In order to handle a death claim, the following documents are usually needed:
- Completed claim notification form
- Death certificate
- Original paperwork and term plan agreements
- Evidence of the beneficiary’s identity
- Proof of the policyholder’s age
- Medical document proving the reason for the demise
- Acts of reassignment or reassignment (if relevant)
Depending on when the policy was obtained, insurance firms divide an insured member’s death into two categories: early death and non-early death.
- If the policyholder passes away within three years of purchasing the policy, it is regarded as an early death. The insurance provider may take the following action in such a case.
- Check with the hospital to see if the insured had been admitted there at the time of death.
- Request a doctor’s report if the death was caused by medical or unnatural causes.
- They may check with the airline to see if the insured person had been a passenger if the death was caused by an air crash.
- In the event of a suicide, accident, or murder, the police will request a file report and the post-mortem report.
