Benefits and Need for Life Insurance
Whether you’ll leave a spouse and children behind or other loved ones such as siblings or elderly parents, with life cover you can make sure they are looked after should you pass away.Taking out life insurance is one of the most important things you’ll ever (have) to do, and the sooner you get it sorted out, the better.It can be effectively incorporated into your portfolio if you know and understand how the death benefits for the same will be paid.Even if you are a stay-at-home-mom who doesn’t provide an income, you will still leave a major financial gap should you pass away as you run the household and take care of all the domestic aspects of the family.
A minimum of thirty days is allowed to review the claim as per IRDA regulation, after which the benefit can be paid or denied or postponed for additional information.Insurance companies mostly pay out the benefits within thirty days of the insured person’s death.To fasten the process, the beneficiary needs to provide a certified copy of the death certificate of the insured person.Most life insurance companies require an original death certificate instead of a copy.It is essential to accurately provide the right documents on time, to expedite your process and claim the benefits faster.
Take out life insrance while you are healthy and young
It is important to take out life insurance coverage the soonest possible, preferably when you’re still young and healthy and before your have a family that depends on you.
Compare as many options as possible
This way, you can gather as much information and as many quotations as you need, without having to listen to the broker’s sales p–itch.
You shoud not be under insured
Many life insurance policy holders are under-insured and most are not even aware of it.
Beware of very reasonable policies
Paying a bit more by taking out life insurance from a reputable company will generally be well worth your while.
Stick to the facts
Health problems that you have managed to conceal initially may come to light at a later stage, resulting in non-payment or expensive court battles for your family members.
Ask yourself these questions:
What would happen to your loved ones if you died tomorrow?What does your investment portfolio look like?Would they be able to afford to pay for your funeral, your debts and your medical bills?They should answer all your questions.
Life Insurance is designed keeping in mind that we are all prone to sudden or natural accidents and death and this is is the best precaution one can take to ensure a supply of income in times of need when a person is disabled, retires from work or human life is lost.