Life insurance is an important tool to ensure your family’s financial future. It helps to develop a habit of saving. It also helps to ease your mind about how things will be after you are gone. This article deals with the procedure of claiming the maturity amount of your life insurance policy. It also covers the various factors that affect life insurance and its benefits.
Policy Discharge Form
Generally, the insurance company will send a Policy Discharge Form around 1 month before the maturity date of the insurance policy. The letter mentions which documents will be required.
Documents Required
The policyholder is required to fill out the policy discharge form. This form needs to be signed by the policyholder as well as two witnesses. The following documents need to be provided with the form:
- Original policy document
- A copy of identity proof
- A copy of the address proof
- A bank mandate form along with bank details
- A canceled cheque
The filled form and documents need to reach the insurance company at a minimum of 5-7 working days prior to the maturity date of the policy. This will make the process of the maturity claim settlement smoother.
Procedure
- Send documents to the insurance company
- Verification by the Insurance Company
- The insurance company processes the claim
- The payment is made to the policyholder. Maturity proceeds are credited to the policyholder’s account after the maturity date
Important Points
- This procedure is only valid for policies that have maturity benefits such as survival benefits, bonuses, etc.
- If the policyholder dies after the maturity date but before the payment is made, it goes to the legal heirs of the policyholder.
What is Life Insurance
Life insurance is a contract between a policyholder and an insurer wherein the insurer agrees to pay a sum of money in exchange for a premium upon the demise of an insured person or after a predetermined amount of time.
What Affects Life Insurance Plans?
Age
The cost of a life insurance policy is significantly influenced by your age. Younger people pay less for life insurance, and the cost gradually rises with age.
Gender
Women outlive males, according to studies. In light of this, women pay a lower life insurance premium than men.
Health
The cost of your life insurance plan may be affected by your current and previous health issues. You would be paid a higher premium if you have any pre-existing conditions or if you’ve ever had a condition that could come back or impair how well you are now.
Health History in your Family
There is a very high likelihood that you may contract a disease that runs in your family. As a result, you might have to pay a higher premium if you have any inherited conditions.
Drinking Alcohol and Smoking
Lifestyle choices like these can have an adverse effect on your health and contribute to a number of health problems. As a result, those who smoke or drink heavily are subject to higher insurance premiums.
Coverage Type
The cost of your life insurance policy may rise or fall depending on the type of coverage you choose. The cost of your package would go up if you included any riders. Additionally, premiums for policies with longer terms than those with shorter terms can increase. Furthermore, the premium is influenced by the kind of life insurance plan you choose. The least expensive type of life insurance, for instance, is term life insurance.
Coverage Amount
A bigger sum assured translates into a higher premium, and vice versa, depending on the amount of coverage.
Job
The cost of your life insurance plan will be greater if you have a high-risk line of work. The insurance company will charge you a higher premium, for instance, if you work in construction or if your employment involves any form of risk, such as regular exposure to chemicals.
Benefits of Life Insurance
One of the most crucial financial tools for an individual, life insurance is regarded as such because it provides so many advantages. It gives you the opportunity to amass a fortune and gives your loved ones financial security while you are away. Along with providing for your retirement needs, life insurance gives you numerous options to invest.
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FAQs
The cost of a life insurance policy is significantly influenced by your age. Younger people pay less for life insurance, and the cost gradually rises with age.
Women outlive males, according to studies. In light of this, women pay a lower life insurance premium than men.
The cost of your life insurance plan may be affected by your current and previous health issues. You would be paid a higher premium if you have any pre-existing conditions or if you’ve ever had a condition that could come back or impair how well you are now.
Lifestyle choices like these can have an adverse effect on your health and contribute to a number of health problems. As a result, those who smoke or drink heavily are subject to higher insurance premiums.
