Do You Need to Notify Your Health Insurance Provider When Someone Dies?

The Importance of Notifying Health Insurance Providers After a Death

When someone close to you passes away, you are often occupied with funeral arrangements, and claiming their health insurance benefits may not be your immediate priority. However, utilizing the policy benefits can help cover medical expenses incurred before their passing.

So, is it necessary to notify health insurance providers when someone dies? Does informing them promptly help speed up the claim process? Here is a comprehensive guide to solve all your doubts regarding health insurance claims on the insured individual’s death.

What happens to health insurance when you die? After the policyholder’s death, an individual health insurance policy will be terminated, and any applicable benefits will be paid to the nominated beneficiary. If no nominee is listed, the claim may involve legal procedures before settlement. It is recommended always to add a nominee whenever you buy individual health insurance.

Individual Health Insurance on Death

The benefits of health insurance upon the policyholder’s death depend on the type of plan. If the deceased individual was already covered by individual health insurance, the plan or policy will automatically be terminated on his death. In such cases, the nominee (spouse or children) can claim hospitalization expenses incurred before death.

For example, a person dies due to a severe head injury. He was hospitalised for 5 days, after which he was declared dead. In this case, their nominees can claim the expenses incurred for the 5 days.

Family Health Insurance

In case the insured had enrolled for family health insurance, the remaining family members will continue to receive coverage even after the holder’s demise. However, the family must inform the insurer, who will then update the policy to reflect the changes.

Group Health Insurance Plan

Group health insurance works similarly to family health insurance, except it is provided through an employer. In other words, this policy covers a group of employees, with the employer as the primary member of the plan.

Additionally, the beneficiaries do not benefit from the insured's death. However, if a death benefit clause exists, the beneficiaries can claim a specified amount as coverage.

Senior Citizen Health Insurance Plan

Group health insurance works similarly to family health insurance, except it is provided through an employer. Based on the policy terms, the nominees will receive coverage for the incurred treatment costs before the insured’s demise.

Should You Rush to Your Health Insurance Provider After One Dies?

The answer depends on the policy terms, which vary by insurer. If the death clause is explicitly mentioned in the policy, it is critical to inform the insurance holders as soon as possible.

On the other hand, if there is no benefit clause or coverage in the insurance plan, the policy will automatically expire. Therefore, it is necessary to read all the terms and conditions of the policy.

Also, the period of claim for coverage depends on the policy terms. In most cases, insurers require notification within 30 days of the policyholder’s death. The faster you inform the insurance provider, the smoother your claim process.

When you opt for a medical insurance plan with reputed providers like Star Health, you get a 24/7 customer care helpline for claim intimations. his ensures timely settlement of eligible expenses and minimizes hassles during a difficult time.

Also Read:

→ Guide to Claiming Health Insurance for Hospital Visits

→ Health Insurance Card Renewal Process

→ Health Insurance Setup for Small Businesses

→ Health Insurance Tax Exemptions Explained