LIC Maturity Claim Process

Mostly person before taking life insurance they think that how to claim maturity benefits from life insurance policies? Or What are the maturity claim procedure? How in my absence my dependents or spouse or nominee can take maturity claim?

Every insured person is entitled to claim the maturity benefits only when the policy is in force and all premiums have been duly paid. In life insurance policy with maturity benefits, the insured person will be entitled to claim maturity benefits if they have fulfill the term of the policy. A maturity claim is one of the simplest claim procedures with minimal paperwork require.

Normally the insurance company sends a Policy Discharge form about ninety days (3 month) before the maturity date of the insurance policy along with maturity intimation at insured persons address mentioned in policy. All instructions regarding the documents & procedures are advised their.

First of all, insured person should visit nearest LIC branch and understand the procedures.  Following list of documents require in Maturity claim process:

* Original Policy Bond
* Copy of Identity Proof
* Copy of Address Proof
* Bank Mandate Form with bank details
* A Cancelled Cheque leaf

Arrange all documents require to take maturity claim. The Policy Discharge Form (LIC Maturity Form No.3825) must be duly filed by the policyholder. The Maturity form needs to be signed by Policy holder along with two witness. 
The duly completed form with required documents must reach the insurance company at least one week before the maturity date of the policy for a seamless maturity claim settlement.

Once the documents are reach to the insurance company, they do verification and after that insurance company will process the maturity claim and make the payment to the policyholder. The maturity amount will be credited directly to the bank accounts of the policy holder after the policy maturity date.

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How to Avoid Insurance Claim Rejection ?

Life insurance is not just a tax saving tool, it is a serious financial product which if used correctly can be a bless for your family and dependents. We people take life insurance to safe our future from any mishappen.      

But it will be only if it get paid to our nominee on time without hassle. There are so many clauses, conditions and exceptions in insurance policies. Failure to meet any of these conditions would result in no insurance benefit being pay out. Most often, insurers rely on legal loopholes and clauses in their policy documents to avoid making payments of sums assured, but surprisingly a large number of times, the fault and blame belongs to the customers themselves.

Here are some points to ensure yourself as a customer that you always get paid.

1. Don't Conceal Information:- While taking a life insurance policy any information pertaining to your health/habits which can put an impact should disclose. Any pre-existing disease or condition or smoking/drinking habits or anything that can be linked as being as cause to your hospitalization or death will be investigated and if you have not disclosed to the company about it then sum assured & other benefits will not be given to you or your dependents/nominee. Remember your premiums are decided on this information. If there is nothing that can be held against you then the insurer will have to honor the insurance claim.

2. Accept Medical Examination: After certain age, life insurer ask for sponsored medical examination and test to get better understanding of your medical condition. These test may also help you detect diseases early, and treat them accordingly. These test will decide acceptance/rejection of policy or clear your doubts about any future rejection of claims due to concealing health information. 

3. Pay Insurance Premium On-Time: Remember Insurance company only settle claims on Active Insurance Policies. But there are number of people who do not understand that delaying premium payments result in lapsed policies. Once your policy get lapse, you are no longer covered and all your premiums paid that far will be rendered useless. Your nominee may lost their legal validity to get sum assured on death from the company. In some cases delaying your insurance premium payments lead to Late Payment Surcharge for re-reinstatement of the policy.

4. Nominee Information: Nominee is the person who will receive any and all benefits that come out of your insurance policy in your absence. Nominee should be generally that person whose livelihoods are directly depends on you being alive and well. So nominate some one is more important. If you are single than nominate your parents, if married then spouse or children. Whatever your present relationship status is, always keep nominee name update so that some benefits will to some dependents of yours. If there is no nominee then death benefits may be freeze/rejected.

5. Scrutinize the Policy Documents: Merely telling the insurance agent everything about your medical history will not qualify him to understand and explain all on the form about your medical history. Insurers decide your premium payment amount, overall coverage, and even some exclusions based on whats' filled out in your forms. No one knows better that you, and you need to make sure the insurance provider knows too. You need to take the time out of your busy schedule and check the form that all details are filled in order and truthfully. Check Clauses such as the exception list that indemnifies the insurer from any kind of liability towards you exist all over your policy documents. 

Keep  yourself informed about all developments with your insurer. Keep yourself informed about the details in your policy documents. Stay well informed about the conditions under which you will be eligible for a claim. 

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Change Of Nomination in LIC Policy

    The Insurance Act allows the holder of a life insurance policy to nominate, on his own, a person or persons to whom the money shall be paid in the event of his death while effecting the policy or any time before it matures.
    
    A policy holder can do nomination at the time of proposal by given the details of nominee in the proposal form. If nomination can not be done at the time of proposal, it can be done later also. If nomination is done later, it has to be effected by giving notice in a prescribed form of LIC and it has to be done on the back of the policy document. A nomination is not required to be stamped.
    
    Remember Cancellation or Change in Nomination in insurance policies now comes at a cost as regulator IRDA has allowed life insurance company to charge upto Rs.100/- for offline issued policies and Rs.50/- Online (Electronic form) issued policies.

PROCESS OF CHANGE THE NOMINATION IN LIC POLICY :-  A Policy holder can change his nomination during the policy term and it can be changed any number of times. To change the nomination in LIC Policy, the policyholder has to give a notice to LIC of India in a  Form 3750 and nomination has to be endorsed. Further, the policyholder can change nominee without prior inform them. Nomination can be done or changed number of times by paying nominal fee to the insurer.
To process of change of nomination following documents require :- 

• Relation Proof of Life Assured and the person being nominated
• Form No. 3750 *
• Original Policy Bond.

* If you have Joint Life Policy use Form No.3237.

* If you have Minor Nominee use Form No. 3265.

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How to Surrender an LIC Policy ??

Why we are thinking to surrender the policy while we take it to secure future from financial Problem or Unexpected other risk. Some time we take to save tax U/s.80C also.

REASON TO SURRENDER : 

There may be so many reasons to get it surrender. Might be you are not satisfy with the term & conditions or having some financial problem.

But before going to surrender your policy bond,  you need to check that does your policy has surrender values.

All endowment or money back insurance plans accrue a surrender value after certain (lock-in) period.

Generally insurance policies acquire surrender value completions of three years of your policy. This may varies than the amount of premium paid.

Remember Term Insurance / Health Insurance policies are pure protection plans and do not accrue any surrender value.

Once you have decided to surrender your policy, here is how you go.

REQUIRED DOCUMENTS : -

I.   Original Policy Bond / Certificate

II.  Photocopy of last premium payment receipts

III. Photocopy of latest unit balance (in-case of market linked plan)

IV.  Application for surrender value or LIC SurrenderRequest Letter

V.   LIC Form No. 3510/5074

VI.  LIC NEFT Mandate Form

VII. One Cancelled Cheques / Photocopy of Passbook (NEFT/RTGS Purposes)

All forms are self explanatory, fill all the forms accordingly and have some revenue stamps may require. With the above documents visit your home /servicing branch (office from where policy bond is issued). You can find it on your policy bond or on policy receipts. Only Policy holders can surrender the Policy Bond.

After verification all documents LIC officer will issue an Acknowledgement Receipts for the same. Surrendered process may take 15-20 days and the amount (Surrender Value) will be credited into your bank account directly.

POINTS TO REMEMBER : -

1. Surrender values are payable only after three full annual premium paid.

2. Surrender of policy is not recommended since the surrender value would always be proportionately low.

3. And When you decide again to go for an LIC Policy that would be with higher premium because of your    

    higher age .

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