Legal Tips

Death Claims in Life Insurance

Document Date: 20-Aug-1996

Here are some Frequently Asked Questions on the topic "Death Claims in Life Insurance"

1. I made a nomination under the Co-operative Societies Act for my wife to receive the moneys payable under my life policy, in the event of my death. When I die, does my wife need to apply for grant of probate or letters of administration before submitting a claim ?
2. If I do not make such a nomination, who will be able to submit a claim for the policy moneys?
3. What documents should a claimant bring along in order to submit a claim?

1. I made a nomination under the Co-operative Societies Act for my wife to receive the moneys payable under my life policy, in the event of my death. When I die, does my wife need to apply for grant of probate or letters of administration before submitting a claim?

   No, it is not necessary. We will pay up to $150,000 of the policy moneys to your wife without the need to produce the grant of probate or the letters of administration.

   The balance of the policy moneys above $150,000 will be paid after Income has received the Estate Duty Clearance certificate from the Estate Duty office. This certificate is issued to declare that the no estate duty is payable on the deceased's estate.

2. If I do not make such a nomination, who will be able to submit a claim for the policy moneys?

   If there are no nominees, a person who is considered a proper claimant can submit a claim. In the case of a will, a proper claimant would be the person who claims to be entitled to the policy moneys as executor. This would mean the person named as executor in the deceased policyholder's will. If there is no will, a proper claimant would usually be the deceased's spouse, parent, children, brother or sister.

   Income will settle the claim up to $150,000 to a proper claimant without the grant of probate or letters of administration. Income will pay the balance of the policy moneys above $150,000 to the proper claimants after obtaining the Estate Duty Clearance Certificate.

3. What documents should a claimant bring along in order to submit a claim?

   The claimant needs to bring along the original insurance policy, death certificate of the insured person, proof of relationship eg. marriage or birth certificate and the will, if the deceased left one behind.

   If the grant of probate or the letters of administration have been extracted, this should be submitted with the claim.