Description

Under a life insurance policy, the insurer is obligated to fulfill the promised amount to the policyholder if the claim is valid. The losses incurred must be within the coverage scope of the policy. A claim is settled if the policy is active at the time of the loss and if the cause of loss is not excluded.
In life insurance, there are two types of claims: maturity and death claims.
Maturity claims: This refers to the amount paid to the insured individual upon surviving the entire policy term. The insured can request this claim after the policy term concludes.
Death claims: This involves the payment made to the nominee in the event of the insured individual's death within the policy term. The nominee can file for this claim after the insured's passing.
For instance, Reena bought a term plan worth Rs. 1.5 crores to secure her family's financial future. She named Nisha as her nominee and selected a policy term of 20 years. Unfortunately, Reena passed away after paying premiums for 15 years. Nisha, her surviving dependent and daughter, submitted the necessary documents to the insurance company and received the claim amount after verification.