There’s a very good chance that you’ve meticulously planned for every milestone in your life – your career growth, family vacations, your children’s education. But have you thought about what happens to those plans if life takes an unexpected turn?
The United Arab Emirates is a nation where dreams are big and life moves quickly. But here too, like in all parts of the globe, most ordinary citizens drift through life without considering the ever-looming threat that hangs over them, the possibility of tragic and unexpected events striking out of the blue.
Securing your family’s future isn’t just a good idea—it’s a must. And this is where the subject of life insurance comes into play.
The very idea of talking about life insurance might seem daunting, never mind dealing with a claim. Nevertheless, understanding this pivotal process can turn what feels like a complex maze into a clear path. How does a life insurance claim work, and what are the key processes tied to it?
When it comes to securing the financial future of your loved ones, a life insurance claim can be a crucial safety net, and acquiring such a safety net allows the individual to carry on through the uncertainties of life without at least a measure of peace. But if you live in the UAE, there are rigorous procedures that have to be clearly understood. We’re going to be walking you through some of these crucial processes that govern the whole procedure, allowing you to experience a relatively stress-free path towards getting your claim handled.
Types of Policies for Life Insurance Claims in the UAE
Before diving into the claims process, it’s important to understand the types of life insurance policies available in the UAE. Broadly speaking, life insurance policies in the UAE can be categorized into three – Term Life Insurance and Whole Life Insurance. The first of these policies provides coverage for a specified period (e.g., 10, 20, or 30 years). If the policyholder passes away during the term, the beneficiaries receive the death benefit. However, if the policyholder survives the term, there is no payout.
The second one, whole life insurance, offers lifelong coverage and often includes a cash value component that can grow over time.
Breaking down the whole process
Step 1 – Contacting the insurance company
When a life insurance claim needs to be made, the process typically begins with notifying the insurance company of the policyholder’s death. This step is crucial and should be done as soon as possible to avoid any delays. The beneficiary or a designated representative needs to contact the insurer, often through a dedicated customer service hotline or claims team.
Step 2 – Submitting the required documents
The next step in the process would be presenting the required documents. The insurance company, in such a scenario, would require a few key documents to officially process the claim. A certified copy of the death certificate issued by the relevant authorities is a must. Also needed is the original life insurance policy document and a completed claim form provided by the insurer. Additionally, proof of identification for the beneficiary, such as a passport or Emirates ID, is required, along with any necessary medical reports or a doctor’s certificate that may clarify the cause of death. These documents are crucial for verifying the legitimacy of the claim and ensuring that it aligns with the terms of the policy. If you’re capable of supplying the other part with complete, accurate documentation, you can expect a relatively smooth and timely claims process.
Step 3 – Assessment and Processing of the Life Insurance Claim
Once the life insurance claim is initiated and all required documents have been submitted, the insurance company will initiate the process of assessment. This is a multifaceted procedure with a few key steps. First, the company validates the policy details, checking if it was active at the time of the policyholder’s death and ensuring that all premiums had been paid up to date.
The insurer will also carefully examine the cause of death to determine whether it falls within the coverage provided by the policy. While most life insurance policies cover natural and accidental deaths, certain exclusions, such as suicide within a specified period after the policy’s inception, may apply. In some cases, especially if the death occurred under unusual circumstances or if the policy was recently issued, the insurer might conduct a more thorough investigation. As an insurance company, they are certain to be haggled with fraudulent claims, and this is something that they do to protect their own core financial interests.
Step 4 – Payout and Settlement
Once the above processes are taken care of, the insurer will arrange for the payout to be made to the beneficiaries. The most common settlement option is a lump-sum payment, where the beneficiaries receive the entire death benefit amount in one payment. In the UAE, payouts are typically made in the local currency (AED), but if you’re based out of an international territory, then you could request them to make the payment in another specific currency.
Common Challenges and How to Overcome Them
Paperwork and procedures sometimes create unexpected challenges. For those pursuing a life insurance claim here in the UAE, the process here could occasionally get complicated, and the individual may find themselves straggled with a few select challenges, such as:
- Incomplete Documentation: Missing or incorrect documents can delay the claim process. It’s important to ensure that all required documents are accurate and submitted promptly.
- Exclusions and Policy Clauses: Some policies may have specific exclusions or clauses that limit coverage. Reviewing the policy thoroughly and consulting with the insurer can help clarify any ambiguities.
- Cross-Border Issues: If the policyholder or beneficiaries are non-residents, there may be additional complexities, such as currency conversions or cross-border legal requirements. Working with the insurer to understand these nuances can help streamline the process.
Conclusion
This article can be a great source of guidance for you if you’re based out of the UAE with loved ones that depend on you. By understanding the intricacies of life insurance claims process in this country, you can ensure that this specific procedure is doled out in the smoothest manner if and when the time comes for it. This, in turn, means that your loved ones rest assured, knowing they would be fully endowed with the financial support they need. Prepare for the future better and provide peace of mind to your family by comprehending these processes and knowing the critical stages that a life insurance claim-process must go through.
