[Solved] Which of the following is TRUE about the claim settlement process in term insurance policies? — Ans: Claim settlement requires submission of death certificate and policy documents. | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

Which of the following is TRUE about the claim settlement process in term insurance policies?

AClaims are settled only after the policyholder survives the term.

BClaims are paid only if the policyholder surrenders the policy.

CClaim settlement is automatic without any documentation.

DClaim settlement requires submission of death certificate and policy documents.

Step-by-Step Solution

Step 1: Understand claim settlement in term insurance
Claims under term insurance are paid on death during the policy term and require proper documentation including death certificate and policy papers.
Step 2: Analyze options
Claims are settled only after the policyholder survives the term. is incorrect as claims are not paid on survival. Claim settlement is automatic without any documentation. is wrong because documentation is mandatory. Claims are paid only if the policyholder surrenders the policy. is incorrect as surrendering is not applicable in term insurance.
Final Answer:
Claim settlement requires submission of death certificate and policy documents. → Option D
Quick Check:
Proper documentation is essential for claim processing, confirming Claim settlement requires submission of death certificate and policy documents..

Quick Trick: Death certificate + policy docs = claim essentials.

Common Mistakes:

MISTAKES

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