Maturity claim, death claim, survival benefit, nomination and settlement options explained simply, with the documents families usually need.
A life insurance policy is a promise, and the claim is the moment that promise is kept. Yet many families feel unsure when the time comes. Which form? Which documents? Who receives the money? This guide explains the basics in plain words.
Types of claims
| Claim type | When it arises | Who usually receives it |
|---|---|---|
| Maturity claim | The policyholder survives to the end of the policy term | The policyholder |
| Survival benefit | Certain plans pay part of the benefit during the term | The policyholder |
| Death claim | The life assured dies while the policy is in force | The nominee |
Maturity claim
When the policy term ends and all premiums are paid, the maturity benefit becomes due. In a par plan such as New Jeevan Anand (715), this is the Sum Assured on Maturity plus vested bonuses and any final additional bonus. LIC usually contacts the policyholder before the maturity date, but it is wise to keep your address, mobile number and bank details updated.
Survival benefit
Some plans pay money during the policy term if the life assured is alive on set dates. For example, LIC's New Money Back Plan-20 Years (720) pays 20% of the Basic Sum Assured at the end of the 5th, 10th and 15th policy years. Jeevan Utsav (771) pays survival benefits as regular income. See money back plans explained.
Death claim
If the life assured dies during the policy term, the nominee claims the death benefit as defined in the plan, plus vested bonuses if it is a par plan. Any outstanding policy loan and interest is deducted from the claim amount.
Nomination: why it matters
A nominee is the person you name to receive the money if you die. Nomination makes the claim process much smoother, because LIC knows whom to pay.
- You can name one or more nominees, such as your spouse, children or parents.
- You can change the nominee during the policy, for example after marriage or the birth of a child.
- If the nominee is a minor, you can appoint an appointee to receive the money on the child's behalf until the child grows up.
Without a valid nomination, the family may need extra legal papers to prove who is entitled, which takes time.
Settlement option: taking money in instalments
Instead of one lump sum, some plans let you take the benefit as regular instalments. We checked this in the plan 715 brochure:
- Maturity benefit: the policyholder can choose to receive all or part of it in instalments over 5, 10 or 15 years, paid yearly, half-yearly, quarterly or monthly. This must be chosen at least 3 months before the maturity date.
- Death benefit: the policyholder can choose, during his or her lifetime, for the nominee to receive the death benefit in instalments over 5, 10 or 15 years. The nominee cannot change this choice later.
- Minimum instalment amounts apply. In plan 715, the monthly minimum is ₹5,000. If the amount is too small, it is paid as a lump sum.
Options and conditions differ by plan.
A simple example (illustration only)
Rajesh has a policy whose maturity value is ₹10 lakh. He opts to take ₹6 lakh as a lump sum for his daughter's wedding and the remaining ₹4 lakh in monthly instalments over 5 years. The instalment amount is worked out by LIC using the interest rate applicable at that time, so the total he receives over 5 years is a little more than ₹4 lakh.
Documents commonly needed
Exact requirements depend on the claim and the case, but families are usually asked for:
- Claim form, filled and signed
- Original policy document (or an indemnity if it is lost)
- Identity and address proof of the claimant
- Bank account details, often with a cancelled cheque
- For a death claim: death certificate, and in some cases medical records, hospital papers or police reports (such as for an accident)
How your agent helps
At Insurance Adda, we help you:
- find out what is payable under each policy,
- fill in the forms correctly and collect the right documents,
- submit them at the branch and follow up, and
- understand options such as instalments.
If a death claim is rejected, the brochures explain that claimants can ask for a review by LIC's Claims Dispute Redressal Committees, and can also approach the Insurance Ombudsman.
Other unfamiliar words are explained in our insurance glossary.
Need help with a maturity or death claim? Contact us and we will guide you step by step.