As a beneficiary or nominee of a life insurance policy, you must know how much time it will take to settle the death claim. Although there is no time limit for a beneficiary to claim a life insurance policy, it is better to avoid any delay. In some cases, the beneficiaries aren’t even aware that they are nominees of a life insurance policy. What if years have passed since the death of the policyholder and no death insurance claim has been made? Will the beneficiary get the death benefits as promised to the policyholder? The answer is yes.
Although there is no time limit for a beneficiary to make a death claim, there is a time limit that a life insurance company adheres to when a death claim is made.
Let us understand this with an example:
Avijit, a transport business owner, had bought a life insurance policy in the early 90s. His family had to file a death insurance claim on the policy in 2015 when he met with an unfortunate and fatal accident.
His son, Rajendra, was 20 years old then and recalls what a difficult time they had to face. The whole process ultimately took more than a month. The claim amount was nonetheless very useful for the family in sustaining their livelihood and business.
Rajendra also bought a life insurance a few years later, once he started to run the business. While researching a suitable plan, he realised things had changed a lot since his father’s days. Now, he could buy the best life insurance policy online. Not only that, Rajendra now has the option of a claim guarantee with online life insurance plans, especially term insurance. Life insurance plans with a claim guarantee promise to settle the death claim within a short period.
Understanding the life insurance death claim time limit and life insurance payout timeline helps beneficiaries avoid delays in receiving death benefits.
