My brother-in-law had bought a term plan insurance on the 1 July 2017. All formalities had been completed and the policy had been accepted by the insurer. However, the policy document had not reached us yet and sadly on 14 July 2017, he passed away. Can we still claim the policy?
—Navin Sharma
Yes, the policy is considered to be in force in your situation. Receipt of the hard copy of the policy is not a prerequisite for risk cover to be effective. Term life insurance policies have no waiting period. So, coverage is immediately applicable. The only exception is that suicide is not covered in the first year of the policy.
Insurer is likely to conduct an investigation into the circumstances of death especially to rule out suicide and non-disclosure of any pre-existing health condition. After that, you would get your insurance claim amount after both the above points are ruled out satisfactorily.
