If the insurance policy comes with survival benefits, the insurance company will not pay the maturity benefit automatically. Hence, the maturity benefit of the endowment plan will not be processed automatically. The insurance company will track the records of policyholders and will send reminders on important matters related to insurance policies at regular intervals. The current generation policyholders will enjoy the mobile alerts as well. The insurance company will also send documents that are required to be furnished. The policyholder can fill those forms and they can submit relevant forms to manage the claim.
There are many benefits associated with the insurance policy. It covers the risk and offers financial benefits. You can buy endowment policy by paying a regular premium or annual premium. Most of the insurance companies allow policyholders to choose monthly, quarterly, half-yearly and annual plans as per the feasibility of customers.
The insurance plan covers various kinds of risks such as life, disease, and accident. Even though the life cannot be equated to the money benefit offered by the policy, the insurance plan will preserve the financial status of the family despite the loss of the breadwinner. The emotional loss of the policyholder cannot be compared with any kind of monetary benefit and it is a void which cannot be filled by any other offer.
The insurance policy offers a guaranteed amount which can be received by the policyholder in the event of the death or risk associated with accident or disease. A lump sum will be paid to the policyholder or beneficiary. If the policyholder dies, the amount will be paid to the nominee or beneficiary. The beneficiary should submit the policy claim form, death certificate, police report and other documents as required by the insurance company.
The insurance company will process the claim form and the benefit will be delivered to the nominee. The money will be credited into the bank account of the nominee or it will be paid through the check as per the option exercised by the nominee.
Types of endowment plans
There are two types of endowment plans.
- Traditional endowment plans
- Unit-linked endowment plans
Traditional endowment plans – There will be guaranteed returns with the traditional endowment plan. The benefits are offered at the maturity date. The reversionary bonus will be announced by the insurance company based on the profits earned on annual basis. There are non-guaranteed benefits which are offered with the participating plan.
Unit-linked endowment plans – The maturity benefit will be offered over a period of time with the unit-linked endowment plans. In addition to the fund value (NAV), the unit-linked plan will also earn additional profits at regular intervals. There will be a very high risk with unit-linked plans and the returns are in proportion to the risk.
Steps to file the death claim form
The maturity benefits are offered to the insurance policyholder after submitting the claim form. The claim will not take place automatically.
- The insurer should get information about the death of the beneficiary (through beneficiary)
- The claim form will be delivered to the beneficiary
- The claim form will be signed by the nominee or legal heir or assignee
- The statement provided by the last medical officer should be attached to the claim
- Death certificate and certificate of witness
- Discharge voucher (if required)
Steps to file the maturity claim
The survival benefits are available under various types of endowment plans with a term ranging from 5 years to 30 years. The claim form or voucher will be discharged by the insurance company to the policyholder through the post. The form will be sent at least one month before the maturity date.
- The policyholder should fill the claim form and should sign the form
- The necessary documents should be attached
- The signature of the policyholder is mandatory
The insurance company will process the documents and will request additional information or documents (if necessary). The claim proceeds will be credited to the beneficiary’s account at the earliest.
Submission of the policy documents
The policy documents along with the original policy should be submitted to the insurance company for processing the claims. The maturity benefits are exempt from tax under Section 10 (10D) of the income tax act.
The maturity benefit is an important feature in an endowment plan or the money back plan. The policy should be bought by an individual to offer protection to the family members or dependents. It is an instrument for goal-based savings as well. If the policyholder dies, the sum assured plus bonuses will be paid to the nominee after submitting the claim forms to the insurance company. If the policyholder is alive, he/she can submit the original policy along with required documents so that the claim will be processed and settled immediately. However, no automatic processing of the claim will take place with the endowment policy.