Explain The Procedure To Take Payment Of Life Insurance Policy?

Question

Explain The Procedure To Take Payment Of Life Insurance Policy?

2 Answers

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Answer 1

The payment of an LIC policy involves the periodic payment of the pre-determined insurance premiums. The premiums are calculated on the basis of the amount of insurance opted for and the age of the policy holder. This payment can be made in cash or by check at:
1) The cash counters of the LIC offices.
2) The dedicated LIC agent.
3) The dedicated online sites.
4) The dedicated phone-banking facilities.

The policy holder, today, has a myriad of payment options to choose from. The payment towards the insurance premium however, in all cases, needs to be made on or before the specified due date. The policy holder can follow the traditional way of making direct cash or check payment at any of the LIC offices. Another option is paying for the premium via a certified LIC agent. The agents take the responsibility of making the timely payments on your behalf, saving you the trouble of doing so yourself. The policy holder can also make online payments with Fed Net or any LIC dedicated website. It is important to check with the LIC officials on the authority vested with the website, prior to forwarding a payment. Yet another option available today is that of phone-banking. Some of the authorized banks for LIC are HDFC, ICICI, UTI and Citibank. However, you need to be an account holder with the bank, for the facility to be made available to you.

The receipts are posted at your documented address or sent online, as per the mode of payment chosen. Check payments are only documented when the transaction is cleared.

Answer 2

When the policy matures then the policyholder can claim the amount from the insurer by adopting the following procedures:

Information of death:
The beneficiary should inform the concerned branch of the insurance company about the death of the insured person. The information letter must contain the policy number, date of death and reason for death, etc.

Proof of death:
Where the policy amount is claimed on the death of the insured, the death must be proved. Providing a death certificate is adequate. Municipal authorities usually issue the death certificate.

Proof of title:
A person claiming on the maturity of the policy must provide the proof of his or her title to the policy amount to the insurer. The assured himself can claim the insured amount, if the policy matures during his lifetime. In case of death of the assured, the nominee or the legal representative will have to prove that he is entitled to the amount of policy. The legal representative is required to furnish "succession certificate" in proof of his title.

Certified of age:
If the company does not admit the age of the insured person, the claimant will have to submit the certificate of age of the deceased person.

Payment and discharge:
When all these legal formalities are completed, the company will send a discharge form to the claimant fills in the form and returns it to the company. After receiving the discharge form the company sends the sum assured either by crossed cheque or pay order to the claimant.