A retirement plan, also known as an annuity or pension plan, helps the insured accumulate a corpus for his/her retirement. Typically, retirement plans provide installments on an annual basis or a 1-time pay-out once insured is 60 years of age. The plan offers vesting benefit in case the insured outlives the policy term and a death benefit in case of the insured’s demise.
Note- In case of the insured’s demise while his/her policy is active, insurance company’s pay a pre-decided amount to insured’s nominee.
Retirement Plan Benefits
Here are the benefits of retirement plans.
Life Insurance Policy: Required Documents
Documentation is the official procedure that contains all the official information regarding the insurance contract between the insurer and the insured. Alternatively, documentation stands for a compilation of documents that is used as a written evidence of information.
Like in every other segment, insurance companies also need proofs while issuing a life insurance policy. The policy seeker is required to submit all the relevant documents in order to avail the policy. This process is done before the policy is issued. The applicant can either upload it directly by visiting the official website of the insurer or e-mail it to insurer’s customer service id. He/she can courier it to the official address as well. These documents also need to be self-attested by the insured.
At the time of applying for a policy, the life insurer will ask for the below-mentioned KYC documents:
This is necessary to estimate the sum assured or cover that is to be offered to the insured. In most the cases, life insurance companies offer a cover up to 20 times the proposer’s annual income. The standard income proofs include:
Insurance companies would ask for address details of the applicant. These documents are used as address proof-
One can provide the flowing documents as ID proof:
Some of the aforementioned documents would be considered as age proof as well. However, below is a comprehensive list of documents that can be used as age proof:
Know About Other Documents of Life Insurance Policy
Apart from the KYC documents, there are some other documents that the insured must know of. These include:
How to File Claims for Life Insurance Plans
Filing a claim and getting the assured amount is an integral part of life insurance cycle. It is important to have the right approach to make a death claim. Here’s how nominees of the deceased insured can make a claim in India –
These are the common scenarios under which claims are made –
Things to Remember When Filling a Claim In Case Of Death
1. Inform the Insurance Company
Contact the insurer as soon as possible on their toll-free number or inform them over email. It is always preferable to inform the insurer directly over a call to initiate the process.
2. Claim Intimation
The beneficiary or the claimant while lodging a claim with the insurance company needs to share all the important details like –
If the life insurance policy has been purchased offline, then the insurer will provide a claim intimation form at the time of the policy purchase.
If it is an online insurance policy, it is simple to apply for the claim form online.
3. Claim Processing
In case of an accidental or natural death, the beneficiary or the nominees need to submit all the supporting documents to the insurance company as a part of the claim process.
The claim support team will evaluate the insurance documents and claim declaration, and will validate the same. In some cases, they might ask to the beneficiary submit a few other documents.
4. Documents to be submitted
5. Approval and Pay-out
Aforementioned are the basic set of documents that are required to process a claim.
Here are few other documents that the insurer can ask for (if need be) –
If the insured outlives the policy term, he/she will be eligible to claim maturity benefits. Make sure the policy is ongoing and that all the premiums have been duly paid.
There is a clear-cut process to file a maturity claim and it involves minimal paperwork.
When the policy is about to mature, the life insurance company generally intimates the policyholder at least 1-2 months in advance. All the details regarding the maturity date, maturity amount, and discharge voucher are provided to the insured.
The discharge voucher (similar to a receipt) has to be signed by the policyholder in the presence of witnesses. The voucher is then sent back to the insurer along with the original policy bond, on the basis of which the payment is released.
In case the policyholder has assigned the policy to another individual or entity, then the assignee must give the discharge voucher to the insurer, in order to receive the claim amount.
Points to Remember-
The Revelation of all the Facts
At the time of buying a new policy, one must mention the details of any previously purchased policy so that they’re aware of the existing policy and can help the insurance seeker choose the right policy as per his/her needs. Otherwise, misrepresentation can be a reason for the rejection of death claim.