The word maturity itself implies that a process has been completed. In the case of life insurance policies, it means that the maximum designated time of the policy is finished. Usually, when you buy life insurance, your mind is set on making sure that your family is financially secure in the case of your sudden demise. But what happens when the maximum term of the policy is over, and you have survived. Known as surviving the policy, the next thing that happens with your insurance coverage depends on which type of policy you bought.
Most policies offer some type of reward for surviving the policy. This is known as the maturity benefit. It is essentially a reward for sticking with the policy through its term. However, like the death benefit, this reward requires you to make a claim. While the process is simple, it can be overwhelming as it is not every day that one has to claim maturity benefits on life insurance.
Once you have understood the process, you only have to think about the validity of your claim. This validity depends on conditions that make you eligible for a maturity benefit. These conditions include proving you have outlived the policy, proving you have paid all your premiums, etc. Once you have checked the validity, you can go through the following process to claim the maturity benefit.
- Get the policy discharge form
The first thing you do when you see your policy is close to reaching its term is that you contact your insurance provider. Your insurance company will deliver a Policy Discharge Form. This form will arrive just a month before the policy expires. The form will also arrive with the details of what document you need to provide with it. If you do not want to wait for your insurance provider to send you the form, you can get it online. It will be available on the insurance provider’s website.
- Fill the form and attach the necessary documents
Once you receive the policy discharge form, you will need to fill it up appropriately and attach the necessary documents. The discharge form will need you to fill in details like your name, the cover amount of the policy, your designation, bank account details, address, etc. Once you have filled the form up, you need to verify that all the details are correct and get the form signed by two witnesses.
The documents that you must attach are:
- Original policy document
- ID proof
- Address proof
- Bank mandate form with bank details
- A cancelled cheque
- Send the form and documents
After you have filled the form, attached the documents, and gotten signs from witnesses. All you need to do is send this form and the enclosed documents to the life insurance company. As soon as your documents are received at the insurance provider’s end, the processing of your maturity benefit can begin.
This step of the process is time sensitive. It is usually recommended that you send the form to the insurer at least 5 to 7 business days before the policy’s expiry date. With ample time for processing, the entire process of claiming the maturity benefit will be free of any hassles. On the other hand, if you fail to send the form to the insurance company on time, you could face a lot of trouble. In addition to the difficulties in the processing, you are likely to receive your maturity benefit much later than you would have preferred.
After you have completed the process on time, all you have to do is wait for the maturity amount to arrive.
Life insurance has evolved into a product that makes sure you are financially ready for either possibility. If you end up dying, your family gets the sum assured. If you outlive the policy, you can claim the maturity benefit with ease. With little to no stress about the process, you can rest easy that you are prepared for every outcome.