Claiming Maturity Benefits in Life Insurance Policies
There are pre-conditions to receiving the maturity benefits of a life insurance policy when it matures. There are mandatory documents that need to be submitted for this. The documents have to be handed over to the company office for verification.
In a life insurance policy, the amount of money that the insured receives from the insurer when the policy matures is known as maturity benefit. There are, however, certain preconditions to this feature.
Primarily, if the policyholder outlives his/her policy term, he/she will receive a maturity benefit amount from the insurance company. However, the insured (policyholder) will only get the amount if the policy is still in force and premium payment has been done diligently. Claiming a maturity benefit is considered to be one of the most hassle-free procedures in the sector of life insurance.
Meaning of Maturity Date
Maturity date in a life insurance policy is the date on which the policy ends and the benefits are ready to be paid to the policyholder once a maturity claim is filed.
Even before a life insurance policy is about to reach its maturity date, the insurance provider intimates the respective policyholder. The insured is generally informed two months in advance.
What is a Policy Discharge Form?
A policy discharge form is usually released by the insurance provider one month prior to the maturity date. Along with intimating the policyholder about the maturity date, this form (policy discharge form) also mentions a list of all the documents that the policyholder is required to keep handy.
What are the Documents Mandatory for a Maturity Claim Release?
The following documents are absolutely necessary to accompany the policy discharge form:
- Policy document - the original copy
- Proof of identity
- Proof of age, provided the policyholder had not provided the same initially
- A cancelled cheque or the policyholder's passbook copy
- NEFT Mandate Form (this is required so that the funds are directly transferred to the individual's bank account)
- Reassignment or assignment (if applicable)
The Procedure
The claim process is extremely simple and hassle-free. Once all the relevant documents have been submitted to the insurance company office, a thorough verification is conducted by its officials. Once the verification process is over, the maturity benefit amount is transferred directly to the account of the policyholder.
Important Things to Keep in Mind
- The above-mentioned procedure is relevant to only those insurance policies that have incorporated the maturity benefit feature. Examples include bonus, survival benefit, and so on.
- If the insured passes away after the maturity date, but before the procedure to claim is carried out, then the amount directly goes to the policyholder's legal heir.
It is also important to keep in mind that in case the policyholder does not receive any intimation letter from the insurance company, he/she will be required to visit the servicing branch carrying all the relevant documents (mentioned above).
Physically carrying the documents to the servicing branch is considered to be safer than sending them via mail.
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