What happens to your term plan if you go missing ?

If you ever go missing, your nominee can then file a death claim on your policy seven years after filing a missing FIR.
 

Here are the steps they need to follow to do so:
 

• File a missing FIR
  
  
• Get a Non-Traceable Report from the police if you are still missing after 7 years
  
  
• Submit it to get a court order
  
  
• Get a death certificate issued by the court and submit it to the insurer
   

Remember, till that time, the premiums on your term insurance policy need to be paid so that the policy doesn’t lapse.
 

If there is sufficient proof that the insured (i.e. you) passed away many years ago, then the insurer will refund the premiums paid after the date of actual death.

In case of natural disasters, the government issues a list of missing people who are believed to be deceased, i.e., “presumed dead”.

God forbid, if you ever go missing in a disaster, your family can take this government-issued list, containing your name, to the insurer and claim your term insurance. In this case, the general rules of submitting a death certificate do not apply.