Confused about how to claim term insurance in India? Learn the exact term insurance claim process, required documents, timelines, and expert tips to avoid rejection.
Imagine buying term insurance to protect your family’s future — but when the time comes, the claim gets stuck in paperwork or worse… rejected. 😰
Don’t worry — in this article, we’ll walk you through the entire term insurance claim process in India, with real-life examples, pro tips, and no boring jargon.
Let’s make it simple, smart, and stress-free!
💡 First, What Is Term Insurance?
Term insurance is a pure protection plan. You pay premiums for a specific term, and if something unfortunate happens to the insured person, the nominee gets a lump sum payout — known as the death benefit.
✅ High cover at low cost
✅ Best for securing your family’s future
✅ But… only if the claim is processed correctly
📦 Types of Term Insurance Claims
There are two main types of claims:
- Death Claim:
Filed when the insured person passes away during the policy term. - Maturity Benefit:
Only applies to return-of-premium term plans. Regular term plans have no maturity benefit.
In most cases, we’re talking about death claims, which the nominee (usually a family member) has to file.
🧭 Step-by-Step Term Insurance Claim Process in India
Let’s break this down with a real-life inspired example.
👨👩👧 Meet Priya
Priya’s husband, Amit, had a ₹1 crore term plan. Unfortunately, Amit passed away in 2024. While grieving, Priya had to figure out how to claim the policy. Here’s how she did it — and how you can too:
🪪 Step 1: Inform the Insurance Company Immediately
- Time is important.
- Inform the insurer as soon as possible — ideally within 30 days of the death.
- You can notify via:
- Insurer’s website
- Customer care
- Branch office
✅ Pro Tip: Most insurers have a claim section on their app/website to initiate this process online.
📑 Step 2: Submit Required Documents
Here’s what Priya had to collect and submit:
Basic Documents Required:
- Filled Claim Form
- Original or copy of Policy Document
- Death Certificate (Mandatory)
- ID and Address Proof of nominee
- Bank details of the nominee (cancelled cheque or passbook)
- Medical records (if applicable)
If death was accidental:
- FIR copy
- Postmortem report
- Police investigation report
🔍 Each insurer may have slight variations, but this is the standard list.
📤 Step 3: Verification by the Insurance Company
- Insurer verifies:
- Policy validity
- Premiums paid on time
- Cause of death
- Any exclusions or non-disclosures
This usually takes 7–30 working days depending on the policy age and complexity.
⚠️ If death occurs within 3 years of policy start, expect deeper scrutiny — called “early claim investigation.”
💰 Step 4: Claim Decision and Payout
Once verification is done, the insurer will:
- Approve the claim and transfer the amount to nominee’s bank account
- Or raise queries if documents are missing
- In rare cases, reject (only if fraud or non-disclosure is found)
As per IRDAI rules, the insurer must settle a claim within 30 days (or 90 days if further investigation is needed).
✅ Priya received the ₹1 crore claim amount in 18 days!
🚨 Common Reasons Why Term Insurance Claims Get Rejected
Let’s be real — nobody wants to pay premiums for years and leave their family empty-handed. So, avoid these mistakes:
- False Declarations:
Hiding smoking habits or illnesses? Your claim can be denied. - Policy Lapse:
Missed premiums = no claim. - Incorrect Nominee Details:
Ensure name, relationship, and KYC details are correct. - Delay in Filing Claim:
File the claim on time to avoid complications.
📌 How to Make Your Claim Process Smooth
- ✅ Disclose all facts honestly while buying the policy
- ✅ Nominee should know about the policy and insurer name
- ✅ Save policy documents in physical and digital form
- ✅ Link your policy with email and phone number for easy tracking
- ✅ Use trusted agents or online platforms to buy policies with claim settlement ratio >95%
🧠 Final Thoughts: Make Term Insurance Work When It Matters Most
Term insurance is not just a policy — it’s a promise to your family.
But that promise is only fulfilled if the claim process is smooth, timely, and hassle-free.
So, don’t just buy term insurance and forget it.
👉 Keep your nominee informed, documents ready, and policy active.
Because when life hits unexpectedly, a well-planned claim process is what keeps your family financially strong.
🙋 Have Questions?
Drop your doubts in the comments or share this guide with someone who needs it.
Better safe than sorry.
Have you checked our latest post Small Cap to Mid Cap: The Right Time to Shift Your SIP and Grow Safely. Don’t let market moods control your money! Start reviewing your SIPs today and align them with your life goals. Smart shifts = smarter wealth.