Prices Increasing soon Prices Increasing Soon

Type of Term Insurance Claims You Need to Know About

If someone is the sole bread-earner of a family, then the anxiety of what will happen to the family if any mishap occurs constantly haunts him/her. Term insurances are the perfect solution to this anxiety. They are designed so that after the policyholder's death, their family receives financial assistance in the form of lump-sum money or part payments. However, to get this financial assistance from a term insurance policy, the nominee/beneficiary has to claim. There are different types of term insurance claims and we are discussing these here today.

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:-

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

What is a term insurance claim?

Every term insurance comes with some benefits. These benefits are selected by the insurance buyers depending on their requirements. A policyholder buys a term insurance policy for a certain period and pays premiums for the decided time so that their family can use up the policy's benefits after his/her death during the policy tenure. However, how does one get these benefits? They can be acquired through different types of term insurance claims. 

Suppose the policyholder passes away. In that case, the policyholder’s family has to approach the insurer and file claims to get the policy's rightful benefits. These claims are called term insurance claims. In other words, it can mean the insured asking for the returns of the policy for which they paid the premiums.

Types of Term Insurance Claims

There are not one but several benefits that term insurance can offer. However, they serve different purposes, and hence, the claim for each of these benefits is also different. Typically, there are three types of term insurance claims that are common in almost all the term insurance policies available in the market. They are:

  • Death benefit claim
  • Maturity benefit claim (Only in case of Term Insurance with Return of Premium or TROP)
  • Rider benefit claim

It is essential to mention that it's not a compulsion for every policy to offer all of the above benefits, based on which the claims can be made. It depends on the type of insurance bought by the policyholder. For example, some term insurance policies only offer a death benefit, while some only offer maturity benefits with a death benefit. 

The rider benefit depends upon if the policyholder had selected any riders in his/her term insurance policy. Then, depending on the range of benefits a policy offers, the premium rates are decided. 

Though most people would prefer to get the maximum possible benefits from insurance during claims, it should be kept in mind that claims can be made based on only what the policy can offer. 

Death Benefit Claim

The main aim of term insurance is to provide financial protection to the policyholder's family after his/her death during the policy term. Therefore, a death benefit in term insurance is the amount of sum assured by the policy that the insured's family or nominee is entitled to get after the policyholder passes away before the completion of the policy tenure. 

The death benefit of any term insurance usually includes:

  • The sum assured on death

The family can receive the entire amount of the death benefit after they file the death claim, as a lump sum amount or in parts from time to time. It would depend on what method of reimbursement was chosen by the policyholder while buying the policy. 

Maturity Benefit Claim

The death benefit in term insurance pays only after the death of the policyholder during the policy tenure. However, what if the policyholder survives the policy term? In this case, the policy has matured, and the policyholder does not receive any maturity benefit upon claiming the insurance. Provided the term insurance policy is of ‘Term Insurance With Return of Premium (TROP)’ type. 

This means, if the policyholder has selected a term plan with a return of premium feature, then he/she is entitled to claim his/her paid premiums in the form of maturity benefits if he/she survives the policy term.  

However, as a rule, this benefit will be acquired by the insured only if they claim the insurance. Another rule of getting the maturity benefit is that all premiums must have been paid on time in the past.

Rider Benefit Claim

Riders are additional benefits that are purchased along with the policy. They are valuable benefits focused on specific areas. There are several riders offered by insurance companies, and adding as many as them causes the premium cost to go up. However, they are beneficial, and if chosen wisely based on the requirements, they can prove to be extremely helpful at times of need. 

As already said, riders offer benefits that are focused on specific areas. Therefore, they can be claimed when those situations arise in life. They can be claimed during the policy term or after the policy term. An important thing to remember is these benefits are distinct from the death or maturity benefits. Hence, for acquiring them, one has to claim them separately from the death or maturity benefit. Common riders for a term insurance plan are critical illness riders, accidental death riders, waiver of premium riders, etc.

Documents Required for Claiming Term Insurance

Every official work requires documents. Therefore, the necessary documents for filing different types of term insurance claims are:

  • The original insurance policy.
  • Death certificate of the policyholder, in case of death benefit claim or for claiming rider benefits that can only be claimed in case of the policyholder's death.
  • The copy of reports of post-mortem, if conducted.
  • Copy of medical history.
  • The identity proof of the person making a claim.
  • The address proof of the person making a claim.
  • The carefully filled claim forms.
  • A copy of a canceled cheque.

How Are Term Insurance Claims Settled?

The claim settlement is usually a three-step process which is as follows:

  • Step 1: Letting the insurance company know about the claim through the claim forms. It should be done as soon as possible, with accurate details being submitted along with the form. These details usually include the details of the policy and the policyholder (in case it's the nominee filing the claim). In addition, in the case of a death benefits claim, the details such as place, time, and cause of death should be mentioned.
  • Step 2: After intimating the insurer, the next step would be to submit all the documents as per the terms and conditions of the insurance company. All these documents must be authentic as only after proper verification, the claim process is initiated. Any faults found in the documents can directly lead to the rejection of the claim.
  • Step 3: The last step is the insurer's responsibility as it will now be the company's duty to settle the claim within one month after the verification of the documents is made. 

Common Reasons for Claim Rejection

Let us look at the most common reasons that why are claims rejected by insurers:

  • The most common reason would be the policyholder’s failure to produce all required documents.
  • The person making a claim puts forward wrong information in the claim form, intentionally or unintentionally.
  • The insured didn't have complete knowledge of the policy, such as the cause of deaths covered under the policy, etc.
  • Any critical information was left out while purchasing the policy, such as existing illness.
  • There was a lack of transparency between the insurer and the insured.
  • The claimant tries to cause any fraud only to gain the claim amount.
Best term Insurance Plans in India Best term Insurance Plans in India


Premium By Age

Term insurance articles

  • Recent Article
  • Popular Articles
05 Jun 2024

Why Should You Consider Inflation When Buying a...

The retail inflation of India rose to 5.69% in December 2023

Read more
29 May 2024

Term Insurance for Individuals with 25K Salary

Securing your family's future is essential, especially when

Read more
28 May 2024

'Har Family Hogi Insured' Policybazaar's Vision...

Empowering Every Household: policybazaar's Commitment to

Read more
23 May 2024

Term Insurance for Individuals with a 35K Salary

Securing your financial future is essential, especially when

Read more
07 May 2024

Term Insurance for 45K Salary Individuals

In life, unpredictability looms large, and while you may

Read more
20 Aug 2014

Term Insurance for Women in India

Term insurance for women is a type of life insurance specifically designed for fulfilling women’s needs and

Read more
03 Dec 2020

What Is Saral Jeevan Bima

Saral Jeevan Bima (SJB) is a simple term insurance plan that offers financial protection for policyholder’s

Read more
13 Apr 2021

2 Crore Term Insurance Plan

2 Crore term insurance provides cover amount of 2 Crore as death benefit to your family in the event of your

Read more
07 Mar 2023

TATA AIA Smart Sampoorna Raksha Param Rakshak Plus

TATA AIA Smart Sampoorna Raksha Param Rakshak Plus is a comprehensive life insurance policy for individuals

Read more
Need Help? Request Callback
View Plans
Download the Policybazaar app
to manage all your insurance needs.