The life insurance you took out to protect yourself and your family from a catastrophic injury, illness, or loss of life may need to be claimed one day. Just as you prepared yourself to purchase the life cover by comparing insurance policies and deciding on the best coverage for your needs, you should prepare yourself and a loved one to file a claim against your life cover should the need arise.
Funds from your life insurance policy may be used immediately upon receipt to help pay for bills, medical costs, or possibly a funeral. When an accident or illness incapacitates you, the added stress of not knowing how to file your claim would be an unwelcome burden to you and your family. A life insurance plan is often scheduled to pay out a lump sum up front, and your family may need access to those funds as quickly as possible.
When comparing life cover plans, take time to read the insurer’s claim process policy to make sure you are not signing on for something overly restrictive or challenging if the time comes to file a claim. By logging on to multicover.com.au, you will be able to access a variety of plans and providers to compare thoroughly and privately
When you purchased your life cover policy, you were most likely asked to name a family member to be the beneficiary in case you were unable to file a claim yourself. Both you and your beneficiary will do well to familiarise yourselves in advance on the proper procedures if filing a claim becomes necessary.
Keep in mind that procedures for filing a claim may vary from one fund to another. Still, there are certain standard steps that will need to be taken:
Check life insurance policy documents: Since life insurance policies and procedures can vary, check the plan documents first to be sure that you are familiar with the policy’s content and conditions, and that you know what relevant information you will need to gather for the insurance company to process your claim.
Contact the insurance company early on: Since it is easy to be distracted in the stress and chaos that often goes along with the need to file a life insurance claim, contacting the insurance provider should be among the first things you or your beneficiary does. At the very least, you will not want yourself or your family to be left waiting for the payout any longer than is absolutely necessary; sometimes life insurance claims can become long and drawn out procedures under the best conditions, so the better prepared in advance you or the beneficiary is, the better.
Take notes: Life insurance claims can take a lot of time to prepare, and it’s easy to forget certain details if you are distracted or stressed. The longer you wait to record important details, the more likely you will be to forget them altogether. Times, dates, people’s names with whom you have spoken relative to the claim, letters or other correspondence (both incoming and outgoing), all should be kept together in one safe place in which you can refer back to them whenever you need to.
Be prepared throughout the process: When you file a life insurance claim after a catastrophic illness or injury, or when your loved one is faced with filing a claim upon your death, either one of you needs to be prepared for the insurance company to request important documentation including medical records, accident records, physician information, a death certificate (sometimes multiple copies may be requested), and other information in order to begin the claim process. It is during such stressful and emotional times that you or your beneficiary must be at your most diligent and have everything prepared in order to avoid unnecessary and problematic holdups in the claim process.
Of course, if you have purchased your insurance through an insurance adviser like those MultiCover connects you with, they may complete the claim process for you. If not, you now have an understanding of the process that you may need to follow.
Save time with preparation
At a time of shock, sorrow, and grief the last thing that any of us wants for ourselves or our loved ones is a stressful experience filing a life insurance claim. This is when advance preparation for such an event will really be beneficial. Although it may be difficult, it is important to actually read the claim information when you are in the process of comparing life insurance plans, and make sure your beneficiary does the same. In the long run it will be the kindest thing for all involved.
Although they may not seem like simple steps, familiarising yourself with your life cover claim protocol and insisting that your beneficiary do the same can save you and your loved ones some added and unnecessary stress at a time when there is probably already plenty of that to go around.
From the moment you begin comparing life insurance plans to the moment you need to file a claim, the more time you take to prepare yourselves to meet your insurer’s claim requirements, the more you do to ease your own suffering, and the suffering of your loved ones.