How to Ensure Your Life Insurance Benefit Will be Paid
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.Life insurance is one of the major investment plans when it comes to long-term financial planning.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 does not earn an income on a monthly basis, 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.
On an average, life insurance benefits are paid when the insured person has died.Insurance companies mostly pay out the benefits within thirty days of the insured person’s death.The beneficiary should know that not all claims are handled quickly or immediately and take a while to be processed.Most life insurance companies require an original death certificate instead of a copy.It’s always advisable to consult your agent, or IRDA Certified professional about death benefits and claims in advance.
Take out life insrance while you are healthy and young
By doing this will save you substantially compared to taking out life insurance when you’re older and have dependants.
Compare and contrast the options
You will have a fair compariosn of all the inusrance offers when you do this.
You shoud not be under insured
Do your calculations and determine how much money your beneficiaries would need.
Cheap policies does not mean quality
Remember that saving a little bit on premiums every year by taking out life cover at a risky insurance company may not work to your advantage in the long run, come crunch time.
Stick to the truth
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 various questions:
How much and by when do you need for your major future expenses like children’s weddings or educations, some planned medical expense etc.?What kind of lifestyle do you wish to live after you retire?What does your investment portfolio look like? If any of these questions make you uncomfortable, you know what to do.
One of the most important aspects of getting the claims is to reach out to your agent as well as the life insurance company immediately.