Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak T.U.L.I.P

A plan that works like a term plan, and Earns like ULIP Plan

Kotak e-Invest

Insurance and Investment in one plan.

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

Know how to claim ULIP benefits after the policyholder’s death if you are the legal nominee. The life insurance claim is tax free under Section 10 (10D) of the ITA.

  • 7,988 Views | Updated on: Jan 05, 2024

ULIP plans have emerged as a major investment scheme in the financial sector. With their one-of-a-kind features and structure, ULIPs have succeeded to attract a large number of people for long term financial investments. It is still very common for some people to be confused as to what is ULIP plan meaning. In this article, we will go over all you need to know about ULIPs and how you may claim death benefits as a nominee listed in ULIP in this article.

ULIP Plan Meaning

ULIP full form is Unit-Linked Insurance Plan. It is a life insurance product that also serves as an investment plan. A tiny portion of the investment is utilised to protect life through insurance, while the rest is invested in the stock market. Policyholders can pay their premiums monthly or annually depending on what they choose. ULIP plan returns on investments are subject to the risks associated with stock market investing. In the investment portfolio, the policyholder bears the investment risk, which is why their investment selection is based on their risk tolerance and needs. In the event of the policyholder’s death, the death benefit is payable to the lawfully chosen nominee. One of the most significant things to note is that there are ULIP tax benefits for you to avail. For instance, In the event of the policyholder’s death, the nominee will receive a death benefit as well as income gathered by ULIP funds, and as per Section 10(10D) of the Income Tax Act, this lump-sum guaranteed death benefit is tax-free.

Steps To Claim Death Benefit As Nominee

Step 1: Notification

If the policyholder passes away during the policy’s term, the nominee must formally notify the insurance provider about the same.

Step 2: Claim Form Submission

For the claim request to be formally registered, a claim form must be filled out and sent to the insurance provider along with the relevant documentation. The form asks for the insured’s information as well as the cause of death and basic info about the claimant.

Step 3: Document Submission

The claimant must produce the original policy document, photocopies of the death certificate, the claimant’s picture ID and address proof, a police FIR and post mortem report in case of accidental death, and if the death was caused by sickness, a certificate and medical documentation from the doctor/hospital.

Step 4: Claim Settlement

After all the necessary documents are submitted by the claimant, the insurer has 15 days to seek clarification and 30 days to settle a claim after receiving all papers as per the IRDA regulations. If an investigation is necessary, the required processes should be finished within 180 days.

It is important that the insurance company has the authority to reject claims based on the following two reasons:

- Distortion of facts.

- Failure to provide essential information that might influence the underwriter’s judgement on claim processing.

Now that you have a basic understanding of how to claim death benefits, ensure that you have all the information and relevant documents necessary to have a smooth claiming process.

Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

Buy Online

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.