Easy Steps to File Maturity Claims for an LIC Policy

1.  The policy for which the claim is being raised should be in force.

1. The policyholder should outlive the policy tenure.

1. All premiums of the policy should be paid.

Which policies are eligible for maturity claim?

The below listed are few types of LIC policies for which claim can be raised:

1.  Unit Linked Insurance Plans (ULIPs)

1.  Endowment Plans

1. Term Insurance with Return of Premium Plans

How to File a Maturity Claim?

As compared to death claims, very little paperwork is required in the case of maturity claims. As the insured usually files these applications, they are easy to complete. Read on to know more about how to file a maturity claim with the Indian Life Insurance Corporation (LIC):

1.  Policy discharge form

When a policy is approaching its maturity date, LIC sends out a policy discharge form to the insured. This is typically done at least a month before the date of maturity. One important thing that must be noted here is that policy discharge forms will be sent only when the policy is in full effect with all the premiums paid. If a policy is lapsed due to non-payment of premiums, it is not eligible for maturity. A policy discharge form can also be obtained from the insurance company's website. The policyholder must fill out the discharge form and send it back to the company along with the list of required documents minimum seven days prior to the date of policy maturity.

The policyholder must complete and sign the form before submitting. Moreover, in addition to two witnesses’ signatures, the form also requires a revenue stamp.

1. Settlement process: After getting the policy discharge and all the paperwork, LIC checks all the documents. Once the insurance company verifies all the submitted documents, it processes the claim. The maturity amount is sent directly to the policyholder's bank account once the policy surpasses the maturity date. Policyholders can also opt to receive a post-dated cheque at their address. Once the policy surpasses the maturity date, the cheque can be deposited in the policyholder's bank account to be encashed.

1. In the case of money-back policies, a particular sum of money will be paid to the policyholder on a periodic basis. Here, if the settlement amount is less than Rs. 60,000, there is no need to file the policy discharge form. The proceeds will be paid automatically to the policyholder’s account once the maturity period is over. However, if the settlement amount is over Rs. 60,000, it is mandatory to file the discharge form along with the required documents.

Documents Required

Filing a maturity claim requires various documents from the insured along with policy discharge form. The list of documents are given as follows:

1. Original policy documents

1. Photocopy of identity proof

1. Photocopy of address proof

1. Photocopy of age proof (if not previously submitted)

1. NEFT mandate with the bank details

1. A cancelled cheque leaf or a copy of the policyholder’s bank passbook

1. Details regarding any assignment or reassignment

For a smooth process, all the documents must be sent to the company no later than 5 to 7 business days prior to the policy’s maturity date. The company will settle the policy claim only once all the documents have been verified.

Important Points to Remember When Filing LIC Maturity Claim

While making an LIC maturity claim, it is necessary to take the following things in consideration:

1.  If the policy dies after the maturity period but before receiving the claim amount, the settlement amount will be paid to the legal heir or nominee.

1. This maturity claim process applies only to policies that have maturity benefits and bonuses. This does not apply to term insurance covers.

1.  If the policyholder does not receive the policy discharge form on time, it is better to check with LIC’s customer service or enquire directly with the branch.

1. If the policy has been taken in the name of another person, the right to give the discharge rests with the assignee.

1.  If there are any doubts regarding the settlement process, the company’s customer service department can be contacted to provide guidance.

Conclusion

Receiving the settlement amount after the maturity period is quite easy. All the documents mentioned above must be submitted without fail to initiate the claim settlement process. If the policyholder does not receive the settlement amount even after two months of filing the claim, he/she can visit the branch office and enquire about the settlement.