How to claim life insurance

How to Claim Life Insurance

Claiming life insurance benefits is probably one of the things people would not want to imagine doing. After all, this means that someone dear to you and your family has passed away. An individual who has purchased a life insurance policy probably wants to protect his or her loved ones by providing financial support even after his or her death. Life insurance in Australia has big payouts, so it is important that you know precisely how to claim such benefits.

How does Life Insurance Work?

Over a specific period, a policy-holder will agree to pay for the life insurance on regularly. People can pay life insurance monthly, every quarter, twice a year, or annually, depending on the set parameters.

Upon the policyholder’s death, the beneficiaries of the life insurance can claim the benefits through a lump sum, specific income payout, life income, or joint and last survivor income.

Can Life Insurance be Denied?

Life insurance is probably one of the easiest claims to get. However, this does not mean that all life insurance payouts get approved. There are a couple of reasons why life insurances get denied:

  • If the policy-holder took his or her own life.

It is especially true if the policy-holder took his or her own life within the first two years of the life insurance policy. The beneficiary will not receive a payout, but it’s possible to get a return of the premiums paid.

  • If the policy-holder gave incorrect information to the insurance company.

The riskier your current status is, the costlier your regular life insurance payments will cost. Some people provide wrong information about their lifestyle to pay a smaller amount to the policy. If a person is found to give false information, the insurance company has the right to deny the insurance claim.

How to Claim Life Insurance

Losing a loved one will definitely make you feel confused about everything, including the ways to claim your life insurance benefits as a beneficiary. To help you get started, here are the standard steps in claiming a life insurance benefit:

  • Reach out to the life insurance agent.

The life insurance agent in charge of the policy will know the terms of the insurance. They’ll also probably be able to answer most of your questions regarding the terms of the insurance.

  • Prepare the necessary documents and requirements needed for the payout.

You have to submit a couple of documents in order for the insurance company to consider your request. Make sure you prepare all documents needed, including the death certificate.

  • Get in touch with your insurance company.

Notify your insurance company that a policy-holder under their roster of clients has passed away. Inform them that you will be claiming the benefits and that you’re preparing the required documents for submission.

  • Submit all the requirements and fill-out all forms necessary.

After notifying the insurance company, fill-out all the necessary forms related to the claims request. Submit all the needed requirements as well, including the official death certificate.

After submitting all documents, the insurance company will start to review and process your request. Wait patiently while they study your case.

Get a life insurance policy for yourself now!

Life insurance is designed to make the transition process easier for the ones left behind after a person’s death. Death will undoubtedly take its toll on the beneficiaries. As such, it would be incredibly helpful if they at least have financial security after their loved one’s death.

Start planning for the future of the people you love once you pass away. Get a life insurance policy and make sure that they are at least taken care of financially even if you are not with them anymore. Start by comparing the life insurance plans available in the market today.

Have you considered switching your life insurance policy? Use our Life Insurance comparison service today.