The Government of India introduced beneficiaries to ensure that a policyholder's legal heirs cannot claim the death benefit until they are named as beneficiaries in the life insurance policy. Despite that a lot of insurance policies go unclaimed each year. If you want the answer to your question, "how do I find out if I am a beneficiary on a life insurance policy" completion of specific conditions is required.
Unless the insured permits the insurance company to provide these details to you, you will not get the information of whether you are a beneficiary of a policy if the insured is still alive. This should be accomplished by sending them written instructions. You'll need to clarify certain details with the insurance provider once the insured has died.
Five Life Insurance Beneficiary Rules
Before getting to the technicalities, let's look at some of the basic things related to the life insurance beneficiary rules:
1. Any individual in whom the policyholder has faith may be appointed as the beneficiary. If necessary, you can replace the chosen individual as a policyholder at any time. You must, however, appoint a custodian if your beneficiary is a minor.
After completing the age of 18 years, the minor is eligible for benefits. Ensure to supply your beneficiary with copies of the life insurance policy so he or she may receive the death benefit when needed.
2. There are no restrictions or specific life insurance beneficiary rules regarding whom you may designate as your beneficiary. It can be a member of your family, a close friend, or a coworker. On the other hand, insurance companies want your beneficiary to be a member of your immediate family.
Or else the policyholder's family and the beneficiary may be involved in a legal dispute. There is, nevertheless, a legal means to prevent this from happening. If you want to assign a beneficiary out of a friend or someone who isn't a family member, you may name that person as an heir in your will.
Know all about nominee for life insurance plan.
3. If you do not designate a life insurance beneficiary or if the beneficiary dies during the policy term, and the policy is not modified subsequently, the insurer implements specific guidelines as per the scenario.
4. The death benefit is awarded to your immediate heirs if you do not have a will that names someone your beneficiary. In this case, just your husband, children, and parents are taken into account.
5. If you do have a will, the insurers will follow the Indian Succession Act, 1925. According to the will, the money insured is dispersed. A succession certificate, however, is required by the court. The beneficiaries will also have to give the insurer an indemnity or a waiver of legal evidence.
Three ways to find out if you are beneficiary of a policy
When your loved ones have passed away, you can claim the benefits of the life insurance plan, if applicable. However, if you were never informed that you were the beneficiary, then there are various ways by which you can claim the policy. You can also claim a life insurance policy if the policyholder is missing.
1. Look through documents
This is one of the most basic things to do if you're focused on finding a solution to your query, "how do I find out if I am a beneficiary of a life insurance policy". When somebody dies, several times it is not possible to easily get all the necessary information.
To figure out which insurance company insures the insured, you may have to go through papers, safe deposit boxes, and other papers. If there are many insurance companies, you will have to speak with each one until you obtain the details you want. You may be a beneficiary on one policy if not on another.
2. Contact the claim department
Inform the representative that you believe you are the insurance policy's beneficiary. They'll require the insured's name (dead), the policy number, and your name. They might want to double-check some details. They will be permitted to share these details with you if you are the beneficiary.
If there are several beneficiaries, the insurance company will not provide this information to each of them. They are not authorized to notify one beneficiary who the other beneficiary is unless the insured provided written correspondence before his/her death.
3. Look for unclaimed policies
If the policy you're looking for is older than a few years, you may be able to find it by checking the unclaimed funds' website for the deceased person's insurance company.
Once you've found it, send a copy of the death certificate and confirm your identity to the insurance company's unclaimed funds department. If you're a beneficiary, the company executive will explain how to get the benefits. Canara HSBC Oriental Bank of Commerce Life Insurance has a seamless claim settlement process that makes claim settlement hassle-free and smooth. Ensure that you have all the documents when you are claiming the life insurance policy.