Making A Claim
How do I claim on a life insurance policy?
If you need to make a claim on a life insurance policy, it's going to be your beneficiaries that are doing that for you because, unfortunately, it will have meant that you have actually passed away. So, first of all, it's very important if you do have life policies in place you make sure your loved ones are aware that those policies are there. Secondly, if the claim then needs to be made, what will actually happen is the insurer will need to be contacted and informed exactly what's happened. They will then take you through their claims process which will involve understanding the cause of death and will probably involve having the GK and having receipt of the death certificate. They will then contact the insurer, and all of their contact details will be in the policy document. Then, the provider will take you through a series of questions to understand the reason for the claim. Once that's all been satisfied and everything's fine from their end, the money will be passed on to you.
How do I make a claim on critical illness cover?
If you need to make a claim on your critical illness policy, the first things that you will need to do, is contact the insurer who will find out exactly what it is that you are claiming for? Prior to that, do make sure that you do read your policy documents carefully to make sure that you are actually covered and that this claim will be honored. Once that claim has been satisfied with the insurer, they will pass on the money to you. Often, insurance companies, in addition to paying out the money, will offer you additional support such as counseling services or various rehabilitation services as well so it is always worth checking what in addition you will get as well as the lump sum payout.
How important is it to update my policy when my circumstances change?
When you apply for life insurance, the information that you give at that time and your circumstances at that time is what the insurer uses to calculate your premium on the kind of call that is available to you. So, in effect, if your circumstances change in the future, it is important that you do tell the insurer. For example, a change of job, maybe a change in health, but it won't effect your premium because your premium is based on what it was at the point at where you made that application. The key is making sure that up to the point of application you tell them any changes in your circumstances. One thing to remember is if your application takes quite a long time to get enforced from the point of application, if anything changes before that policy starts, you do need to inform the insurer. Failure to do that would mean that your policy could be null and void and it may not pay out.
Are there situations where my life insurance policy wouldn't pay out after my death?
If you have a life insurance policy and your loved ones need to make a claim because you have passed away, the claims insurer will ask a series of questions. What they will be looking for is to make sure that all the definitions of the policy have been met, which sometimes can mean that the policy won't pay out. For example, if at the point of application you didn't disclose some key information or you didn't tell the insurer all the accurate information, there is a very good chance your policy will be declined. Also, in the event of suicide or war, or any criminal activity that you have been involved in, meant that your death has actually taken place, this would mean that the policy will not pay out.
Will my life insurance policy pay out if I commit suicide?
If you kill yourself, your life insurance policy will not pay out. Life insurance is there for the unexpected, for the worst to happen. It cannot be a planned or deliberate death.
If I become terminally ill will my policy pay out before I die?
Most life insurance policies do include terminal illness cover. What that basically means is that if you are diagnosed with a terminal illness, the policy will pay out at that stage, as opposed to when you actually do pass away. You do need to make sure, with the insurer, of the actual eligibility. For example, most insurers won't let you claim for terminal illness in the last 18 months of the policy.
What happens at the end of the policy if a claim is not made?
If you have a life insurance policy at the end of the term, thankfully you haven't had to make a claim. The policy will come to an end. You won't get any of your previews back and the provider will notify if that policy is going to come to an end.
I have a joint mortgage with my flatmate, can I be a beneficiary of their policy?
If you and your flatmate have gone and got a joint mortgage, it is important that you do actually have life cover because if something happens to either one you would need to make sure that mortgage was paid off or that you could pay off any debts that were left as a result of that. So yes, you can actually have life cover in those circumstances. If, though, you then decide to go your separate ways and you no longer have any insurable interest with each other, which basically means that you have no financial commitment to each other, that policy would be null and void and you would not be able to make a claim.
Do people ever try to fake their own death?
There will be incidents that life insurers will be able to tell us about, where they have actually found that someone has fraudulently tried to make a claim on a life insurance policy. It's very difficult to do, and extremely rare. Somebody could, if they were actually clever enough, actually fake their own death in the form of fake documentation, a fake policy, or fraudulent ID. That can happen. It's very rare, but it can actually happen.
What types of fraud do people try?
When you think of insurance and fraud, you don't normally think of the two put together, but actually there are incidents where fraud can be committed within life insurance or critical illness. For example, somebody could fake their own death: get fake documentation, take out a policy and then claim upon it. They could also take policies out for people - older folks' identification. It's very difficult to do but it can actually happen. The other thing that can happen with life insurance, and life insurance take it very seriously is money laundering. If your premium is actually higher than normally fifty pounds, they will ask for identification used to make sure that you are actually the person who is applying for that policy.
How do insurers prevent fraud?
Insurers are very keen to make sure that all claims that are made are valid, and that the right people get the right money. They will have fraud departments that will make sure that all claims are looked at. They review GP reports and they make sure that the identification of the person making the claim is actually valid. There will be a series of checks. It's nothing to worry about, but what it does mean is that the right people get the right money at the right time.
What is insurable interest?
Insurable interest is actually a term that you will hear with all different types of insurance. Basically what it means is that there is an interest in the party who has the life cover. So spouses for example have unlimited insurability. Maybe your mortgage lender, you have a debt with them so they have insurable interest in you while that policy is in force. Or a business partner whether it is for financial commitment. The reason it has to be insurable interest is to make sure that if a claim is made on a policy, your money will go into sorter, because it is a genuine claim. Not so they can make any money out of it. And this came about back in the 17th century where people used to take wages out on famous people or very rich people. So they would take a wager out, take a life policy and the claim would not police it. So this is to ensure people do not go around taking life wagers when people have absolutely no significance to them at all.
If I die what investigations will be carried out to check that my claim is legitimate?
If you are unfortunate enough to pass away and a claim has been made on your policy, when that claim is made the insurer will do a series of checks which will make sure that claim is valid. For example, cause of death will be explored. They will also contact your GP and look at any medical history, and basically make sure that the information you disclosed at the point of application is actually accurate. Once all that is complete and they are satisfied with everything that comes back, the money will become payable.
