How to Manage and Claim Life Insurance Correctly

How do you go about arranging life insurance? Many people still don't realize how important it is to become a life insurance or death insurance policyholder. After all, you never know when problems or risks may come your way.

This is especially true if you have many dependents, such as a spouse, children, or parents. If you were no longer around, their livelihood would certainly be seriously affected. This is why death insurance is important to consider.

For a more complete discussion of death insurance, you can read the following review!

What Is Death Insurance?

Death insurance is also called life insurance. It is insurance that provides protection for the family or heirs of the policyholder when death occurs, so that the heirs of the policy participant receive financial security.

Benefits of Death Insurance

Before discussing how to arrange death insurance, you should understand the benefits you will receive from joining this insurance program. That way, you may become more interested in becoming a participant. Here are 4 benefits of death insurance:

1. Reducing the Burden of Funeral Costs

Death insurance can greatly help families avoid a financial crisis. In addition to providing a death benefit, participants can also enjoy insurance benefits, starting from a young age according to the predetermined time period.

2. Preparing for Funeral Expenses

Funeral costs are quite expensive these days. Death insurance can help cover the various costs you would otherwise need to prepare when an insured person passes away, such as funeral expenses and the arrangements for the death.

3. Coverage for Chronic Illness

Another benefit of death insurance is that it can cover treatment costs. You probably know that treating chronic illness is not cheap, so you need to set aside sufficient funds. This insurance can serve as the funds or money you use for medical treatment.

4. Retirement Savings

Besides protecting against the risk of death, another benefit is serving as retirement or old-age savings. There are life insurance products that help policyholders build up retirement savings.

In addition, the premiums paid are usually not only for insurance needs but can also take the form of an investment.

Here's How to Arrange Death Insurance Properly

Many people don't know how to correctly arrange death insurance. Therefore, here is some very useful information for you:

A. Submit the Claim No Later Than 3 Months After the Date of Death

Life insurance usually has a waiting period of 90 days, or 3 months. Within this period, the heirs must submit the claim no later than 90 days after the insured's date of death.

B. Prepare the Various Requirements

Don't forget to prepare the various required documents. The requirements below will determine whether the death claim you submit is approved or not. These requirements include:

• The original policy.
• Death Claim Form. To be filled in by the beneficiary.
• Death Claim Form to be filled in by the doctor.
• Power of Attorney form regarding disclosure of medical record contents. The heirs must fill it in and sign it on stamp duty paper.
• Certificate of Death issued by a government agency (Certified Copy of Death Certificate), which has been legalized.
• If the cause of death was an accident, you must attach the BAP or Police Examination Report from the police.
• If the death occurred at home without medical treatment, you must write a chronology of the death, signed by the heirs.
• Copy the results of previous medical examinations carried out by the insured.
• Photocopy of the Family Card (KK).
• Fill in the notification form with the account number and a photocopy of the bank account book.
• Photocopy of the insured's identity card.
• Photocopy of the beneficiary's identity card.
• Other documents.

C. Data Verification

Once you have met all the requirements, the next step in the process for claiming life insurance is for the insurer to begin verification. This means they will check all the data you have submitted and start the confirmation process.

At this stage, you simply wait to be contacted by the insurer. The verification is usually done via SMS, stating that your claim has been approved.

Verification normally takes 2 weeks (14 working days). However, it may take longer if the insurer requires a more complex verification and investigation.

D. Disbursement of the Insurance Benefit

At this stage, the funds are ready for you to receive. This happens once the insurer has completed verification and you have met all the requirements.

The insurer will begin disbursing your funds, which can be received through the beneficiary's bank account. Everything therefore depends on the requirements you submitted, so it is important to make sure all of them are complete.

Reasons a Life Insurance Claim May Be Rejected

Now that you understand how to claim life insurance, why might your claim still be rejected? The insurer must have a reason for rejecting a claim.

Your claim will be approved when the insured person dies from an accident or from natural causes such as illness. However, the insurer may reject your claim if the person:

• Committed suicide.
• Took part in a criminal act.
• Received a death sentence.
• Died from HIV/AIDS (within the first two years).
• Was deliberately killed by someone with an interest in the insurance payout.
• Worked in a high-risk occupation, such as firefighting, the military, mining, and so on (unless there is a specific agreement).

Can a Claim Be Made After Only 2 Months of Premium Payments?

This is a common question for people who have just joined a life insurance plan. It is important to understand that life insurance aims to provide protection for policyholders against the risk of death. Of course, no one can know in advance when this risk will occur.

This risk can happen to anyone, at any time, and in any place. For policyholders or participants who have paid their premiums and then pass away after two months, a claim can still be made.

The payout must be collected by the family or heirs who are listed as beneficiaries of the life insurance sum assured. For example, a husband may list his wife as the beneficiary.

The amount of the life insurance sum assured you may receive is stated in the policy document. For example, if the amount stated is Rp200,000,000.00, then the beneficiary will receive that same amount.

Now That You Understand How to Claim Life Insurance

That concludes our discussion on how to properly process a life insurance claim . The process is fairly straightforward, as long as you prepare all the required documents and other requirements.

In addition, the costs and procedures of funerals are now a burden for many people. For this reason, Kamboja is here to serve as funeral protection for you.

Kamboja offers a range of services, from funeral arrangements and third-party handling to family support benefits. You can access all of these processes without a long wait.