Claiming on a life insurance policy can be confusing, especially if you don’t know where to start. We understand that the whole situation can be pretty overwhelming.
To help you out, your trusted life insurance advisers from Central Coast Financial Planning Group are here to share a quick guide on how to make a life insurance claim:
How to Make a Life Insurance Claim
1. Contact the insurance company that you hold the policy with.
Your friendly insurance claim manager will help you through the process. They’ll file a claim for you, send the paperwork to the claim assessor, and follow up until the claim is processed.
It’s important to note here that if you already have a Financial Adviser, you should call them first instead of the insurer directly. They will have an experienced in-house claim manager who will manage your claim on your behalf as much as possible.
2. Complete the paperwork.
Once the insurer is notified of your claim, they will issue you with claim forms that you need to complete and return. This will often involve providing medical evidence, financial evidence, or in the case of death – a death certificate.
3. Wait for the company to investigate and process the claim.
Don’t expect quick results. It could take weeks (or in some cases, months) for the company to investigate and settle your claim. In some instances, you may be required to provide further details.
4. Once your claim is completed, you’ll receive a settlement.
If your policy is for Total and Permanent Disability, Trauma Insurance or Income Protection, the benefit will be paid to you either directly or via your superannuation fund. If the policy is for Life Insurance, the benefit will be paid to your nominated beneficiaries.
Information You Need to Provide When You Make the Claim
Here’s a list of the information you may need to provide when you claim:
- Policy document
- Policyholder’s name and contact information
- Date of birth of the insured
- Bank details
- Reason for claim
- Financial evidence (e.g. payslips or tax returns)
- Medical documents (e.g. discharge papers from the hospital)
- Executor’s name and contact information (for Life Insurance)
- Date of death and cause of death (for Life Insurance)
Documentation for Your Claim
Any documentation on the policy, such as the application, policy document and any amendments, is useful to have on hand. If you don’t have these documents, you can obtain a copy from your financial adviser or insurance company but this may cause delays to your claim.
How Long Does the Process Take?
The first thing to do is to read your policy, which will have a section on what to do in the case of a claim. If your policy doesn’t explicitly say how long the process takes, it is reasonable to wait for the claim to be processed for about 90 days. Some companies are very fast, processing claims within a few weeks. Others, however, will take much longer.
It’s important to note that the time it takes for the insurance company to process your claim will vary depending on your situation – the more complicated, the longer it will typically take to complete.
Here are some factors that will affect the processing time:
- Policy type
- Reason for claim
- Finances evidence provided
- Medical evidence provided
- Details provided in claim forms
Make Your Claim Process Stress-Free!
It’s essential to understand the claims process to avoid any confusion. Hopefully, this guide helped you understand what to do when you want to claim a life insurance policy.
If you have more questions on this topic or you need guidance regarding life insurance, consult the experienced Wealth Protection Team at Central Coast Financial Planning Group. Our empathetic Wealth Protection Team know how hard it can be for clients to manage a serious illness, injury, or death so we are here to take away the financial burden and additional stress should you ever need to go through the claim process. Call us or book online to secure your complimentary first meeting with our advice team today!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.