How to get Maturity Claim in an LIC Policy? Although people correlate Life Insurance Policies with Death Claims, only 14.5% of the claims are actually Death Claims and over 85% of the claims in India are Maturity Claims. And Life Insurance Corporation of India, LIC being the largest insurance company in India with the highest market capitalization has the highest claim settlement ratio in India as well!
Now, before explaining Maturity Claim, some policies offer Survival Benefit as well, i.e. during the policy tenure, certain amount is paid back to the policyholder in pre-defined intervals provided the policyholder is alive.
What is Survival Claim?
Most traditional insurance policies like endowment plans and money back plans combine the elements of insurance and investment. As a result, apart from covering your life, these plans also build up a fund that is paid out to you if you survive the policy period. This is known as the maturity claim or the survival claim. Though very similar to each other, the maturity claim and the survival claim must not be confused. A maturity claim is mostly paid in endowment plans, in one lump sum. The survival claim is paid in money back plans, periodically throughout the policy.
Once you know that more than 85% of the LIC Policies are paid as Maturity Claims, it becomes extremely important to know the procedure to seamlessly receive Maturity Benefit.
What is Maturity Claim?
Maturity claim in insurance is one of the simplest and most basic types of claims. If the policyholder survives the policy period, he will be entitled to receive a sum of money from the insurance company. This is known as the maturity claim. The maturity claim is nothing but the sum assured along with the bonuses and any cash value that has been added on to the insurance fund if the policy participates in the bonuses of the company.
Thus, Maturity Benefit = Sum Assured + accrued Reversionary Bonuses, if any + Final Additional Bonus, if any.
What is the procedure to receive the maturity claim?
To receive the maturity claim, all the policyholder has to do is fill out the policy discharge form. The policy discharge form is sent to the policyholder by the insurance company about 3 months before the policy is to terminate. The policyholder, after filling the form out, must send it over to the insurer, who in turn will sends a post-dated check to the policyholder. Once the policy terminates, the cheque can be en-cashed.
What are the Documents necessary for a Maturity Claim
The necessary basic documents to file a Maturity Claim:
- Policy Discharge Form
- Original Policy Bond
- Name Printed Cheque of the Policyholder for fund transfer of the maturity claim amount
Thus, these are the various possible claims in a Life Insurance Policy and the procedure for claiming the same.
LIC has been extremely diligent over the last 59 years to pay maturity claims and has the highest claim settlement ratio in the country despite the numerous numbers of claims every day. In fact, LIC initiates to send Policy Discharge forms a couple of months before to its policyholders so that the documents are submitted well ahead of time and no delay happens to pay out the claim on the Maturity Date itself.