How Does Life Insurance Work after Death?

A life insurance plan is a type of insurance that covers you right from the moment you purchase it. This insurance type usually covers death and disability. You can also opt for additional covers upon paying an extra premium. 

In case of the unfortunate death of the policyholder, a death benefit is paid to the beneficiary when they file a claim. To find out how life insurance works after death, keep on reading. 

Types of Death Covered under Life Insurance

Here are the types of death benefits covered under a life insurance policy:

• Natural Death or Death due to Health Issues — The death benefit is paid out to the beneficiary.
• Death due to an Accident — If the policyholder passes away due to an accident, the nominee receives the insurance payout. However, if the policyholder was under the influence of alcohol or drugs, or fleeing after breaking a law when the accident occurred, the claim is rejected. 

Always check the policy document for exclusions.

What is Excluded under Life Insurance after Death?

Here are the general exclusions of life insurance after death -

• Suicide As Cause of Death — If the policyholder passes away due to suicide, the provider can reject the death claim of life insurance. However, note that conditions may apply like how long after the policy issuance does this cover become valid.
• Non-Disclosure of Disease — The claim can be rejected if the policyholder does not declare pre-existing medical conditions or habits that can lead to untimely death or a family medical history. Some non-disclosure aspects also include not giving away the correct age. 

How to Claim Life Insurance after Death?

Follow these to file a claim for life insurance after the death of the policyholder —

• Connect with the insurance provider. Inform them about the death as soon as possible. 
• Next, fill in the claim form and provide all the required information. Make sure you are factually accurate so that your claim for life insurance after death does not get rejected or delayed. 
• Submit the claim form and all the necessary documents to the insurance company. Do this through authorised channels. 
• Make sure to provide additional information or documents when the insurance provider asks to quickly start the claim settlement process. Stay in touch with the provider in case they need any additional information. 
• The insurance provider will then assess your life insurance claim for death of the policyholder as per your provided information. If necessary, they will also conduct an investigation. 
• Once the claim gets approved, the provider will pay out the settlement amount as per the policy terms. The payout is made through bank transfer or cheque. 

If you have any difficulties or questions during the claim process, contact the insurance company's customer service or claims department for help.

Documents Required to File Claim for Life Insurance after Death

Listed below are the documents required to file a claim for life insurance after death —

• Original policy document
• Death certificate 
• Identification documents (Emirates ID or Passport)
• Filled-in claim form
• Medical records (if applicable)
• Additional supporting documents requested by the insurer

Note: Steps and requirements may vary by insurance company and policy. Review your policy documents and follow the instructions from your insurer.