How To File An International Life Insurance Claim

life insurance for foreign residents of Japan

Life insurance is an important part of any financial plan. For those who live, or frequently travel abroad, international life insurance is critical for protecting your loved ones in the event of your unexpected death. But dealing with the legal complexities of life insurance in the midst of loss can be overwhelming. As such, it’s important that policyholders familiarize themselves with the process of filing a claim with their international life insurance policy ahead of time, just in case.

Understanding International Life Insurance Policy Terms And Conditions

Life insurance serves as a crucial financial safety net, designed to offer protection and peace of mind. It operates on a simple principle: the policyholder pays regular premiums (payments) to the life insurance company. In return, the insurance company promises to provide a financial payout to designated beneficiaries (recipients) in the event of the death of the life assured (typically the breadwinner or primary caregiver). This agreement ensures that the loved ones of the life assured can maintain their standard of living in their absence.

For those living in Japan, international life insurance is an invaluable tool. It transcends geographical boundaries and is tailored for the dynamic lifestyle of global citizens. Key benefits of international or global life insurance include:

  • How To File An International Life Insurance Claim
  • Worldwide Protection: Unlike domestic policies with regional limitations, international life insurance offers comprehensive global coverage. Whether you’re settled in Japan, traveling, or considering another international move, your policy remains effective, providing continual financial security for your family.
  • Currency Flexibility: A standout feature of international life insurance is its adaptability to different currencies. This is particularly beneficial for expatriates in Japan who might have financial commitments or beneficiaries across the globe. It eliminates the complexities of currency conversion and protects against exchange rate fluctuations.
  • English Language Support: Understanding the nuances of an insurance policy is crucial. International life insurance policies often offer multilingual support, with English language services being a key component. This ensures that you can fully comprehend and efficiently manage your policy.
  • Designed for Expatriates: Tailored to meet the unique needs of expatriates, international life insurance policies address the specific challenges of living abroad. They take into account cross-border legalities, diverse beneficiary locations, and international financial intricacies, making them an ideal choice for global citizens living outside of their home country.

However, having the insurance policy in place is one thing. Collecting the benefits when the time comes is another. What happens if you actually have to make a claim? What steps should you and your family be prepared to take?

How To File A Claim On Your International Life Insurance Policy From Japan

A life insurance claim is a formal request to receive the death benefit from the policy, typically filed after the policyholder’s demise. Time is of the essence when filing a life insurance claim. Though it’s a difficult period, it’s important to initiate the claim as soon as practicable. 

Most policies have specific time frames for filing claims, and delays could lead to complications or denial. Prompt filing ensures a smoother process and quicker access to the death benefit. Typically, the process will involve the following steps:

  • How To File A Claim On Your International Life Insurance Policy From Japan
  • 1. Gather Essential Documentation: Begin by collecting all necessary documents. This includes the policyholder’s death certificate, the original insurance policy, and any additional documents your insurer might require. These serve as the foundation of your claim, verifying the policyholder’s death and your eligibility as a beneficiary.
  • 2. Submit the Claim: Once your documents are ready, proceed to submit your claim. This can often be done online via the insurer’s website or by mailing the documents directly to their claims department. Ensure that all forms are filled out accurately and all required documents are included.
  • 3. Insurance Company’s Review: After submission, your insurer will review the claim. This involves verifying the cause of death, ensuring premiums were up-to-date, and confirming that the claim complies with the policy terms. It’s a process of due diligence to safeguard against fraudulent claims.
  • 4. Approval and Payment: If your claim is approved, the insurer will process the payment. Beneficiaries usually receive the death benefit as a lump sum, providing crucial financial support during a challenging time.

During the claims process, your insurer might request additional information or documentation. It’s vital to maintain open communication lines, responding promptly to any such requests to avoid delays in your claim’s approval. Your financial adviser will usually take care of all these steps with you and guide you through the process.

Navigating Denied International Life Insurance Claims 

While filing a life insurance claim is generally straightforward, several challenges may arise, such as discovering you’re no longer the designated beneficiary due to undisclosed changes by the policyholder. Legal avenues to identify the current beneficiary exist but can be complex and not always successful unless procedural errors or undue influence are proven. In addition, lapses in premium payments by the policyholder could lead to policy termination, although insurers usually offer a grace period of 30 to 60 days for reinstatement. 

A significant hurdle is the contestability period within the first two years of the policy, where insurers can void the policy for undisclosed critical information. Some of the reasons that a company may deny your life insurance claim include:  

  • Navigating Denied International Life Insurance Claims
  • Health-Related Denials: Insurance companies often deny claims based on the policyholder’s health condition. Obesity, high cholesterol, and diabetes are common health issues that can lead to a denial. It’s vital to disclose your complete health history accurately when applying for life insurance.
  • Chronic Illnesses: Conditions like cancer, heart disease, or Alzheimer’s can significantly increase the risk of claim denial. Providing thorough medical documentation can sometimes sway insurers to offer coverage.
  • Medical Test Anomalies: Findings such as blood or protein in urine samples can be red flags for insurers. If denied for these reasons, a re-evaluation or second medical opinion may be necessary.
  • Lifestyle Factors: Lifestyle factors like excessive alcohol consumption or hazardous occupations can lead to claim denials. Be transparent about your lifestyle and occupation when applying for coverage.
  • Past Denials and Medical History: Previous denials or extensive medical histories, recorded in databases like the Medical Information Bureau (MIB), can influence insurers’ decisions. Working with an independent agent who understands your specific situation can help navigate these challenges

international life insurance in english for japan residents

Dealing with Claim Denials

If your international life insurance claim is denied, it’s important to take proactive steps to address the situation. Request a detailed explanation for the denial from the insurance company. This will help you understand the specific reasons and assess if there’s room for contesting the decision. If the denial is based on issues like misrepresentation or non-disclosure, gather all relevant documents, including medical records and policy paperwork, to support your case.

If you believe the denial is unjustified, consider seeking legal advice. An adviser specializing in insurance claims can provide guidance on the feasibility of an appeal and represent your interests. In some cases, the issue might be resolved through negotiation or mediation.

Preventing Claim Denials: Best Practices for International Life Insurance Policyholders In Japan

To prevent claim denials in international life insurance, policyholders must ensure their policies are in good standing and accurately reflect their current situation. Always provide complete and accurate information when applying for life insurance. Familiarize yourself with the terms and conditions of your policy, especially any exclusions. Ensure your premiums are paid on time. It also helps to periodically review your policy to ensure it still meets your needs and adjust as necessary.

Consulting an international financial adviser can be particularly beneficial in navigating the nuances of international life insurance. These professionals have specialized knowledge of the various regulations, tax implications, and financial considerations that apply across different countries. An adviser can guide you in selecting the right policy that meets your family’s specific needs, as well as assist in estate planning and ensuring that your life insurance integrates seamlessly with your overall financial strategy.  Furthermore, they can help you navigate any challenges with your life insurance policy, and act as an advocate to make sure you and your loved ones receive the support you need.

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Sources and Further Reading

- “Am International Analysis of Life Insurance Demand.” Brown, Mark J and Kim, Kihong. The Journal of Risk and Insurance, Volume 60 No. 4

- “Joint Life Insurance Policies” Cox-Steib, Joshua. BankRate (2021)

- “How to Choose the Right Type of Life Insurance.” Insurance Information Institute.

- Li, Donghui., Moshirian, Fariborz., Nguyen, Pascal., Wee, Timothy., “The Demand For Life Insurance In OECD Countries.” The Journal of Risk and Insurance. Vol. 74, No. 3 (2007)

-  Shoenthal, Rebecca., Gambhir, Nupur., “How Long Should My Life Insurance Coverage Last?” Policygenius (2021)

- “What are the Principal Types of Life insurance.” Insurance Information Institute.