I am 39 years married with a son and reside in Davanagere. My brother who is 37 years had bought a term life insurance plan on 3rd July 2017. He completed all formalities and the term life insurance policy had been accepted by the insurer. Before the policy document reached us my brother passed away on July 15th. My brother had made his wife as the beneficial nominee. Can we make a claim on this term life insurance plan as the policy documents have not reached us? Kindly advise.
Sorry on your loss. Yes, the term life insurance plan of your brother is considered to be in force. The receipt of the hard copy of the policy is not mandatory/a prerequisite, for the risk cover to be effective. Term life insurance policies have no waiting period. So, coverage is immediately applicable. The only exception is that suicide is not covered in the first year of the policy. 1. The insurer will thoroughly investigate the circumstances of death especially to rule out suicide and non-disclosure of any pre-existing health condition. 2. The new insurance laws that came into force after Insurance Laws (Amendment) Act was passed in 2015, state that no claim could be rejected after three years by an insurer. So the insurer will thoroughly investigate your claim. If the insurer is satisfied there is no fraud committed, the claim amount will be settled.
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