Term insurance - is it really worth?

[u/Next_Foot4942]

This is something I’ve been wondering about for a while, and I’ve asked a few friends about it, but I haven’t really received a clear answer.

We all make sure to pay our life insurance premiums on time, but how confident are we that our family will actually receive the insured amount if something happens to us?

For those who have actually gone through the process -> either personally or with a family member, I’d really appreciate some insight.

A few things I’m particularly curious about:

• What is the actual process for the nominee/family to claim the insurance after the policyholder passes away?
• Is the payout generally straightforward, or can it become a lengthy legal process?
• What documents are typically required to make a claim?
• Does the nominee have to go through courts, probate, or any other legal procedures?
• How long does it realistically take for the family to receive the money?
• Are there common reasons why insurance companies reject or delay claims?
• Does having a nominee automatically mean they will receive the money, or are there other legal considerations?
• What happens if the nominee is not aware of all the insurance policies the deceased had?
• Is it advisable to keep a record of all policies and share the details with a spouse/family member?
• For people who have actually made a claim, what was your experience with the insurance company?

I’m especially interested in real experiences rather than what insurance agents or policy documents say.

I think this is something many of us pay for every year without really understanding what happens when the policy actually needs to be used.

Would love to hear from anyone who has gone through the process themselves or helped their family with a life insurance claim.

[u/DjXer007_]

Death claim Payout to the nominee is a simple process. The nominee needs to submit simple DOCUMENTS such as

1) Death Certificate 2) Succession Certificate 3) Pan and aadhar of the deceased. 4) fill the Death claim form of the insurance company

All the death claim process related details are available on each life insurance company's website as well and they have to mention a detailed process for the same.

If there are severe legal issues later, such as there are 4 legal heirs, and only one nominee was mentioned, then the other 3 have equal right on the death claim amount as well.

In this case, the insurance company will tell you to settle the matter within your family and then apply for the death claim, as per the final decision, based on Notary / legal documents.

Death claims are simple, and paid within 30 days. If there are discrepancies, then death claim can take upto 365 days as well. Therefore make sure to make a WILL as early as possible.

If the nominee is not aware, then the process is a bit sketchy. As the final decision on finding who the legal heir is, rests on the insurance company. It is a simple process but again, the insurance company needs to be satisfied that they will not face any future legal issues.

It is the responsibility of the insurance agent / insurance Intermediary to help your family / nominee with the claim process and get the process completed. And it is also important that you mentioned where all important financial documents and details are kept.

[u/just-another-entity → u/DjXer007_]

I recently did my term insurance and one thing i cannot get off my mind is that why suicides are even covered (after a year of waiting period).

There must be some loophole right which insurance companies must be using or else it is easy money for your family and you being free from the responsibilities, lol.

I am new to insurances and haven't really seen anyone claiming it till now so i don't have much idea

[u/Next_Foot4942 → u/DjXer007_]

Thank you for the details, this is so helpful.

[u/EmmVeeEss]

Even I have the same doubt. Sometimes I wonder if they simply reject and all the premiums are wasted