Claim

A claim is made when the event the policy covers occurs — most often death during the term, or survival to maturity. The insurer verifies the facts against the policy and the application before paying.

Most claims are paid. The ones that are not usually founder on something that was not disclosed when the policy was taken out.

Related terms

• Death benefit The amount payable to the nominee if the life assured dies during the policy term.
• Claim repudiation An insurer's refusal to pay a claim, with reasons given.
• Nominee The person you name to receive the payout on a death claim.

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