Getting Familiar with Insurance Policy Claims

An integral part of all insurance services include the insurance claim. It refers to a formal request directed to the insurance company where the claimant seeks payment for the insurance policy. The request is reviewed for legitimacy as well as the claimants’ eligibility in receiving the payment. Once everything is validated, the insurance company pays the insured party.

The insurance claims cover several benefits such as death benefits from life insurance policies. Some policies also include health exams and procedures. In most cases, a third party claims the benefits on behalf of the person insured. However, the policy holder or benefactors written in the policy can claim the insurance payout.

The insurance claim protects the policy holder from financial loss. The insurance services provide contracts between the insurer and insured party. These contracts include medical costs and expenses, physical damages and liabilities, and death.

Health Insurance

Medical procedures are quite expensive. With this in mind, health services have created policies to help protect and aid patients from getting buried in financial expenses and problems especially in the event of an accident or a medical illness.

Property Insurance

Your home is one of the most important assets of an individual. When filing for a property claim, an assessment is conducted to check the damages reported. Once the analysis is cleared and approved, the insurance company will then provide reimbursement to the policy holder for the damaged property.

Life Insurance

Life insurance claims are required to present a death certificate. In situations where the claim involves large sums of money, an in-depth assessment may be required to guarantee that the cause of death is covered by the insurance policy. The insurance contract does not cover suicide or death from a criminal act.

Insurance Payouts

Most insurance services grant the claim after a processing period from one to two months. Although there is no particular period, insurance companies usually pay the insured or the beneficiary without deferral to avoid additional charges and interests in delay.

There are some scenarios where there is a delay in the payouts. For example, if the policy holder dies within two years from the date of the policy issued, the beneficiary may have to wait for six months to a year due to the two-year contestability. Most contracts include this clause to ensure that no fraud has been committed.

This is the same with suicide and homicide cases. In homicide cases, an investigation will be conducted to assure that the beneficiary is ruled out as a suspect.

For the longest time, the insurance payout is provided in lump-sums. However, in recent years, some insurance companies have installment or annuity payment schemes. Some policy holders prefer installment payouts to assure that they receive a certain amount over a period of time.

Usually, life insurance policies pay upon the death of the insured but now some companies allow the insured to withdraw part of the face amount in case of a terminal or critical illness. This practically allows the policy holders to become the beneficiaries of their own policies.

Insurance policies provide the insured and their loved one’s assurance from facing financial difficulties. This will protect you from further stress financial loss.