The simple truth is that we buy insurance so that we can make a claim. You would buy car insurance only if you wanted to have the option of covering your repairs through the policy. Hence, claims are a huge factor in buying and keeping any type of insurance policy. This includes term insurance as well.

The two major parts of claims that people often worry about are claim submission and claim settlement. While claim submission is simpler, claim settlement is a different story. It can be a long and tedious process. IRDAI reports that the average claim settlement ratio across various providers is 90%. But the process of settling claims is often stretched over a long period of time.

The last thing your family would want to hear after your demise is that the claim settlement is going to take time. Hence, it is important to choose a term insurance provider that has a hassle free claim settlement process. There are a few things you can do to ensure that the claim settlement process is smooth.

Here are a few tips:

• Give the right information about your health and lifestyle

Submitting a claim is not simply making a call. At the time of making a claim, the insurance provider will ask for information that is related to the processing of the claim. At this time, no piece of information should be held from the insurance provider, especially related to your health and lifestyle. In fact, the insurance provider should be aware of any developments in your health and lifestyle throughout the policy term. This includes any genetic diseases, newly diagnosed diseases, habits like smoking or drinking. Make it a point that, at the time of buying the policy and making a claim, no information entered into the form is incorrect or ambiguous. Even a minor piece of incorrect information can affect the claim process in a major way.

• Maintain documents properly

At the time of making a claim, you’ll need to provide certain documents. At such a time, the claim is settled as fast as you can provide all the necessary input. Hence, you have to make sure that you keep all the necessary documents in a place that is accessible at any time. The term insurance providers would need documents such as age proof, death certificate of the policyholder, policy documents, and some others that the insurance provider might need. If you have to spend time finding these documents at the time of the claim, you might have to wait for a long time for the claim to settle or would have to refile the claim all over.

• Select a provider with a simple claims process

The best tip for this situation is to eliminate the problem before it exists. Each insurance provider has a different method of processing claims. Based on these different methods, the time it might take for a claim to be settled might be different. Moreover, many insurance providers have a lengthy and complicated claims process to begin with. In such a situation, even if you do everything right, the claim might end up being settled much later than you’d want. Hence, the problem starts with the selection of the insurance provider itself. Thus, you need to look into the claim settlement process of each insurance provider. We suggest, you go for a simpler and faster process. This ensures that you don’t have to wait much for the claim to be settled. In addition, you’ll also have a better understanding of the process.