When you pass away, your life insurance in Sri Lanka enters into the claims process. Here is what typically happens to your life insurance after you die:

• Notification: The beneficiary of your life insurance policy or retirement plan in Sri Lanka (usually a family member or loved one) needs to inform the insurance company of your death. They should provide the necessary documentation, such as a death certificate, to initiate the claims process.
• Claims process: The insurance company will guide the beneficiary through the claims process. They will provide the necessary forms and instructions to complete the claim. The beneficiary needs to submit the required documents, including the death certificate and any additional forms requested by the insurer.
• Verification and review: The insurance company will review the submitted documents and verify the claim details. They may contact the beneficiary or other parties involved to gather any additional information if needed.
• Pay-out: Once the claim is approved and all necessary verifications are complete, the insurance company will process the pay-out. The beneficiaries will receive the death benefit specified in the policy. It is usually a lump-sum payment, although some policies may offer other pay-out options like periodic payments or annuities.
• Taxes and estate considerations: In many cases, life insurance proceeds are not subject to income tax. However, they may be subject to estate tax if the total value of your estate exceeds the applicable exemption limit set by the government. The beneficiaries should consult with a tax professional or estate planner to understand the potential tax implications.

The specific process and requirements may vary depending on the insurance company, policy terms, and local regulations. It is recommended to review your policy documents and consult with the only the best life insurance company in Sri Lanka, who has the right expertise and experience, to understand the precise details and steps involved in the claims process.