Types of Term Insurance Claims: Death, Maturity and Others Detailed

2025-06-06

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The real value of a term insurance policy is revealed when it’s time to file a claim. Knowing how the claim process works can make a difference during uncertainties.

Term insurance claims aren’t restricted to unfortunate events like death. Some policies offer other benefits through riders that cover critical illness or disability. Each type of claim comes with its own process, timelines, and documentation.

In this blog, we’ll explain the different types of term insurance claims, so you’re well prepared to make the most of your policy.

Key Takeaways

A term insurance claim allows you or your nominee to receive the plan benefits based on specific events.
Many term plans offer extra protection through riders like critical illness and accidental covers.
Following the correct procedure helps avoid delays or rejections.
Honest disclosures and timely premium payments are essential for smooth claim settlement.
At Canara HSBC Life Insurance, we aim to provide simple, quick, and transparent claim support with term plans designed to protect your loved ones.

What is a Term Insurance Claim?

A term insurance claim is a formal request made to the insurer to receive the benefits of the policy. The request can be raised by you or your nominee, depending on the situation and type of claim.

For example, in case of the policyholder’s passing during the policy term, the nominee can file a claim to receive the sum assured. Similarly, rider claims are made when specific events like a critical illness or accident occur.

To get the claim approved, you need to submit relevant documents and follow the insurer’s claim process. Once verified, the company releases the payout as per the policy terms.

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Types of Term Insurance Claims

Term insurance offers different types of claims based on the nature of the event and the policy benefits. Each type serves a specific purpose and defined process. Knowing these helps you or your nominee handle the claim without any worries.

Death Claim: If you pass away during the active policy term, your nominee can raise a death claim. They will need to inform the insurer and submit documents such as the death certificate and the original policy papers. Once verified, the insurer will release the sum assured to your nominee.
Maturity Claim: If you outlive the policy term and your plan offers a return of premium, you can raise a maturity claim. In this case, the insurer returns the total premiums you paid during the policy duration. This applies only to plans that offer maturity benefits.
Rider Claim: If you have added riders like critical illness or accidental disability, you can raise a rider claim when the event occurs. You will need to share medical reports, diagnosis papers, or accident details based on the rider type. The insurer will then provide the benefit as promised in the policy.
Terminal Illness Claim: If you are diagnosed with a terminal illness and your policy includes this benefit, you can request an early payout. This helps you manage treatment expenses and plan your finances. Submit your medical diagnosis and related documents to support the claim.
Accidental Death Benefit Claim: If your plan includes an accidental death benefit rider and death occurs due to an accident, your nominee can claim an extra payout. In addition to the sum assured, the insurer will provide the rider benefit once documents like the police report and postmortem findings are verified.

How to File a Term Insurance Claim?

Filing a term insurance claim is a simple process. Whether it's you or your nominee raising the claim, following the right procedure ensures quick settlement.

Step 1: Inform the Insurer: The first step is to inform your insurance company about the claim. You or your nominee can do this online, over the phone, or by visiting the nearest branch. It's best to do this as soon as possible after the event. With Canara HSBC Life Insurance, you can submit your details online through the website and receive timely insurance claim assistance.
Step 2: Submit the Documents: Once you’ve informed the insurer, the next step is to submit the required documents. These usually include the original policy, identity proof, claim form, and any specific documents based on the type of claim, such as medical reports or a death certificate.
Step 3: Wait for Verification: The insurer will review the documents and verify the claim details. If everything is in order, they process the claim as per the policy terms. Most insurers try to settle valid claims quickly, often within a few working days.
Step 4: Receive the Claim Amount: Once the claim is approved, the amount is transferred to the nominee’s or policyholder’s registered bank account. Always ensure your contact and bank details are up to date to avoid delays.

Did You Know?

You can claim a deduction for the premium paid towards riders under Section 80C, up to a limit of ₹1.5 lakhs.

Source: Tax2win

Common Reasons for Term Insurance Claim Rejection

If certain conditions are not met, a valid policy can be rejected. Knowing the common reasons helps you avoid mistakes and ensures your family receives the benefits without trouble.

Incorrect or Incomplete Information: If you provide wrong or incomplete details while buying the policy, it can lead to claim rejection later. Always fill out the proposal form honestly, including medical history, income, and lifestyle habits.
Delay in Claim Intimation: It is important to inform the insurer as soon as possible after the event. Delayed intimation can slow down the process or even lead to rejection. Make sure your nominee knows how to raise a claim without delay.
Non-Disclosure of Health Conditions: If you hide existing illnesses or health conditions at the time of purchase, it could affect your claim. Insurers verify health history during the claim review, and non-disclosure can raise red flags.
Lapsed Policy: If the policy has lapsed due to missed premiums, your claims might be rejected. Always pay your premiums on time and check that your policy remains active throughout the term.
Unclear Cause of Death: In some cases, if the cause of death is unclear or disputed, the insurer may delay or deny the claim. Submitting clear supporting documents like medical records or investigation reports helps avoid this.

Tips to Ensure Smooth Claim Settlement

A well-managed term insurance policy helps your family receive the claim amount without trouble. By following these simple steps, you can avoid delays and make the claim process seamless.

Share Policy Details with Your Family: Keep your family informed about your term insurance plan. Let them know the policy number, the sum assured, and the insurer’s contact details. Also, explain the process of raising claims if needed. It leads to faster processing and ensures the claim is not delayed due to missing information or lack of awareness.
Keep Records Updated: Maintain all policy-related documents in one place and ensure they are easily accessible. Update important details like your nominee’s name, address, and your bank account information if anything changes. If your nominee is unaware of updates or finds errors in the paperwork, it could create hurdles during claim approval. Regular checks help keep your records accurate and ready for submission.
Disclose All Details Honestly: While buying a term insurance plan, provide complete and honest information. This includes your medical history, lifestyle habits like smoking, and any existing health conditions. Being transparent from the start ensures your claim remains valid and gives your family full access to the promised benefits.
Pay Premiums Without Delay: Paying your premiums on time is essential to keep your policy active. If you miss payments and the policy lapses, the claim will not be accepted. Use reminders, auto-debit options, or annual payment plans to make the process easier. Keeping your policy active gives you peace of mind and protects your nominee from facing any hurdles in the future.
Choose a Trusted Insurer: Select a company having a strong claim settlement ratio. A reliable company will support your nominee with quick claim approvals and responsive assistance. At Canara HSBC Life Insurance, we provide a claim settlement ratio of 99.3%.

Final Thoughts

Knowing how term insurance claims work helps you protect your family with confidence. Clear processes, timely payouts, and simple documentation make a big difference. At Canara HSBC Life Insurance, we are committed to delivering reliable claim service and offering flexible term plans tailored to support your family and long-term financial goals.

Glossary

Term Insurance: A type of life insurance that provides financial protection for a fixed period.
Nominee: The person you choose to receive the policy benefits in case of your death.
Sum Assured: The amount paid by the insurer to your nominee upon your death during the policy term.
Maturity Claim: A claim you raise when you outlive the term of a plan that offers a return of premium.
Rider: An additional feature or cover added to your base policy, such as a critical illness or accidental death benefit.
Claim Settlement Ratio: The percentage of claims an insurer successfully settles out of the total claims received in a year.

FAQs

A term insurance claim is a formal request made by you or your nominee to receive the benefits promised under your term insurance plan.

Most insurers settle valid claims within a few working days after receiving all required documents. Timeframes may vary by company and case.

Yes, claims may be rejected due to non-disclosure of facts, policy lapse, incomplete documents, or incorrect information during purchase.

Your nominee can file a claim in case of your death. You can raise maturity or rider claims during your lifetime.

No, regular term plans do not offer maturity benefits. Only the return of premium plans provides this option.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.