The death claim process is simple and the benefit is tax freeMake life easy after death . Fill in a form to file a death claim . It will be about four months before you can get the claim amount.
Apnainsurance Research Bureau
21 Dec 2007
How do I make a death claim?
In the event of death of the insured during the term of the life insurance policy, the nominee has to intimate the insurance branch. Thereafter, a claim form has to be filled and submitted to the office with the original policy documents and the death certificate.
This entire process could take up time; ranging from a few weeks to three to four months, if all the paperwork is in place. In case of complications, it could take much longer.
Do I have to claim maturity benefit or is it automatically payable to me?
The claim amount is not automatically payable to you. You need to sign and send back a discharge form/voucher/claim form that is sent to you by the insurance company (usually, sent more than a month before the maturity date). Other formalities may vary from company to company.
Once approved by the insurance company, the proceeds of the policy are sent by mail or electronically cleared by the company, depending on the choice you make.
Is the maturity amount tax free?
Yes, the proceeds from a life insurance policy are tax-free on maturity.
Is the death benefit taxable?
No. The death benefit is a tax-free sum of money paid to the nominee.