All You Need to Know When Claiming ULIPs


Unit Linked Insurance Plan (ULIP) is life insurance that offers the policyholder dual benefits of life insurance and investment. During its tenure, if the policyholder loses their life, the nominee receives the death benefit. The death benefit can either be the sum assured or the fund value of your plan, whichever is higher. Before buying a ULIP, it is essential that you are aware of its different components. This is because it directly affects the financial future of you and your family. While understanding different components, it is also important that you, as a policyholder, along with your nominee, are aware of the claim process. This ensures that, in case of an unfortunate event, one knows what needs to be done.

The process of claim

There are several steps involved in filing a claim for the ULIP plan. The nominee is eligible to file a claim only if the policyholder had paid the premiums regularly. Once the nominee is aware of the demise of the policyholder during the duration of the policy, here are the steps they need to take for filing a claim:

Inform the insurance company

After the demise of the policyholder, the nominee needs to inform the insurance provider immediately. Once the insurance company has been notified, the nominee needs to submit documents to start the process of the claim. The documents that needed to be submitted immediately include information about the policyholder’s name, policyholder’s date of birth, insurance number, nominee details, cause of death, time of death, and place of death. This information allows the insurance company to begin its process. The claim form is available online on the insurance company’s portal or the nominee can also get it from the nearest branch of the insurance provider.

Documents to keep handy

Here are the crucial documents that usually a nominee needs to keep in handy to start the claim process of the ULIP plan:

  • Original life insurance policy papers
  • Age proof of the policyholder
  • Death certificate of the policyholder
  • Any other documents that the insurance company has specifically asked for

If the nominee has filed for a claim within three years of when the policy was purchased, the insurance provider may investigate more to ensure the genuineness of the claim. Here are some processes an insurance provider might conduct to check the authenticity of the claim:

  • The insurer may contact the hospital where the policyholder lost their life.
  • In case of any flight crash, the insurer may confirm the details with the airline authorities regarding the policyholder.
  • In case of demise because of a critical illness, the insurer might ask for the last medical records, along with a doctor’s certificate.

Submission of the required documents

The nominee of a ULIP is required to submit a set of essential documents. Submitting these documents allows the insurance company to fasten the ULIP claim process. The documents that are needed to be submitted include:

  • A filled claim form
  • Original death certificate
  • Attested copy of the death certificate issued by the local municipal authority
  • Original documents of the insurance policy
  • Identity proof of the nominee
  • Nominee’s passport-size photo
  • Policyholder’s medical records
  • Last medical attendant certificate
  • Post-mortem report, if any
  • Deeds of assignment, if any

Once the nominee has submitted all the documents mentioned above, the insurance company can start the claim settlement process.

Claim settlement

As per the Insurance Regulatory and Development Authority of India (IRDAI), an insurance provider has to process any life insurance claim within 30 days of when they receive the claim request. The deadline starts once the nominee provides the claim form to the insurance provider with all the other required documents. However, sometimes, the insurer may investigate before starting the ULIP claim process. In such cases, the insurer is required to complete the claim process within 6 months from when they received the claim form.

When one buys a ULIP, the life coverage quotient applies to both natural and unnatural death. It is important that you know the inclusions and exclusions of your policy before buying it. Using a ULIP plan calculator will provide you with an estimate of the premium that you need to select for getting your desired coverage. Along with that, you should also check the claim settlement ratio of the insurance provider from whom you are purchasing the plan. This ratio reflects the number of claims that the insurance company paid out of the overall claims that they received.

Also Read: Importance of Life Insurance for Young Adults

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