Insurance policy queries: Only nominee can get death benefit money on policy

Published: January 7, 2020 1:29:30 AM

In case there is no nominee you will need to get in touch with the insurer to understand the process for settlement in favour of the legal heirs.

Insurance policy, Insurance policy query,  nominee, death benefit money, policyThe insurer may admit the claim and the nominee/legal heir shall receive any death benefit which may be present in the policy.

By Ashish Kumar Srivastava

> My uncle died five years ago due to heart ailment. We have now found a life insurance policy of his which matured last year. Can my aunt get the maturity amount?
– Jitendra Rana
There are various factors to be considered here. First, and most important, is your aunt the nominee in the policy? Only nominees can receive the policy money in the event of death of the policyholder. In case there is no nominee you will need to get in touch with the insurer to understand the process for settlement in favour of the legal heirs.

Second, you have to find out if the life insurer had been notified earlier about the death of your uncle. If not, do so now along with an explanation of what caused such delay. The insurer may admit the claim and the nominee/legal heir shall receive any death benefit which may be present in the policy. Third, check whether the life insurance plan has a maturity benefit payable even after death of the policyholder or not. If yes, the nominee/ legal heir will also receive the maturity benefit.

> Can I extend a life insurance policy on maturity?
—Alok Kumar Ranjan
You cannot renew your policy after it has matured. Rather, re-evaluate your financial needs since those may now be different depending on your current life stage and risk appetite. You might re-purchase the same plan or take up a new policy based on your current requirements. Contact a life insurance advisor for this.

> Can a life insurance company reject claim at any point of time?
—S Gopal
Any life insurance claim, which is genuine and is backed by requisite documents, is liable to be paid by the life insurer. The nominee of the life insurance policy should make sure to complete the documentation submission to the life insurer to avail the claim amount.

> My daughter is getting married next month. Can I gift her a life insurance policy where I pay the amount once and she gets the maturity amount?
—A K Kaushik
Gifting a life insurance policy to your daughter during marriage is a perfect choice to ensure her secured future. You can be the proposer for the policy. There are life insurance plans with single premium options, where you will need to pay the entire premium in one shot.

The writer is MD & CEO, PNB MetLife.
Send your queries to fepersonalfinance@expressindia.com

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