Awareness about Life Insurance

life insurance

INTRODUCTION

The fragility of life is overwhelming. With the current epidemic problem, uncertainty has also shocked the world. In these situations, solid insurance coverage becomes crucial. A breadwinner's key duty and a major cause of stress are ensuring that the family will be protected when they are not around. Life insurance coverage is useful in these circumstances.

Nevertheless, what if a calamity occurs and your family is left in financial difficulty because they are not aware of your life insurance policy? After obtaining the insurance, the process is not over. The insured should also inform the family about the policy.

Why your family has to be aware of your life insurance policy: -

Prior knowledge to understand the claim process and make a timely claim:  The main objective of a life insurance policy is to safeguard the family's financial stability in the case of the insured's demise. However, to secure your loved one's financial assistance, you must make them aware of the plan's details, such as the insurance company, term, sum assured, etc. This will make it possible for your loved ones to immediately submit a claim after your passing. Without this knowledge, the beneficiary might not be able to submit a claim and obtain benefits. A person who was uninformed that a policy even existed is not qualified to profit from it.

The insurance claim amount can be used for immediate and future family expenses: Plans for life insurance assist families with major expenses like debt repayment, business startup, mortgage payments, etc. However, if the family is unaware of the policy or how to file a benefits claim, this is not practical. Also, the family can on occasion require cash to pay for funeral expenses. Hence, it is crucial to fully describe the insurance policy to the beneficiary or a close and reliable family, including its provider, broker, claim process, period, etc.

The life insurance claim amount can be used to fulfill the dreams of the beneficiary: Life insurance policies assist to realize the future objectives and financial goals of the policyholder in case of survival and maturity benefits, as well as give family support and fulfill the beneficiary's dreams in the absence of the main breadwinner of the family. Determining your desires for the estate, the division of assets, and any further uses of money, if any, as well as informing the family about the policy is essential.

A family support system to pay off any existing debt or liabilities: Death occurs suddenly, therefore no one plans for it. In the event of the insured's untimely death, the insured's family shall pay any outstanding debts. The family may experience undue stress in dire circumstances as a result of this. Furthermore, if the beneficiary is not informed of the insurance coverage, this could make the situation worse. So that the nominee is protected and the family can easily settle current debts, you should explain the policy and the claim process to the nominee.

CONCLUSION

You must let your loved ones know about the plan and all of its details, such as the insurance provider, term, sum assured, etc., to offer them financial support. This will make it possible for the family to submit a claim immediately after your passing.

Comments

Post a Comment

Popular posts from this blog

ARE YOU WORRIED ABOUT PRE-EXISTING DISEASES WHILE BUYING HEALTH INSURANCE?

Image
  Introduction Ailments that the insured had prior to purchasing health insurance are known as pre-existing conditions. According to IRDAI, a condition is considered pre-existing if the insured person received a diagnosis of it up to 48 months before obtaining the insurance. All chronic disorders, such as diabetes, asthma, high blood pressure, thyroid disease, and more, are regarded as pre-existing ailments. Pre-existing diseases in a health insurance plan: There is a pre-existing condition clause in every health insurance policy. For those who have pre-existing diseases, buying health insurance may be difficult. Prior to learning about the limitations on coverage for pre-existing conditions, determine what a pre-existing health condition actually implies. Pre-existing diseases waiting: In the context of health insurance, the waiting period refers to the period of time before which the insured person is not eligible to receive benefits under the policy for the listed diseases
Read more

MONEY MANAGEMENT

Image
  Regardless of how much (or little) you know about investments, stock markets, credit cards, and insurance, your financial planning is most likely to fail if you don't have a firm grasp of your money. Hence, having a solid understanding of your finances, or your financial situation, and being able to manage them intelligently, is the most crucial stage in financial planning. So, what is your financial situation? 1) Earnings and Expenses: Your expenses matter more than earnings when it comes to determining how much money you have on hand after meeting your needs and wants. You must create a 'balance' between your spending and earning patterns if you want to be in a better financial state. Creating a ‘balance’ between your earning and spending patterns will create a benchmark for planning your finances. Normally, a healthy bank balance at the end of the month indicates a trend towards a good financial position, and a zero or negative bank balance at the end of most mo
Read more

How to Invest in Share Market & How to Buy Stocks Easily

Image
Introduction: Investing in the stock market over the long run might aid with money management. When you first start out, investing in the stock market may be intimidating because it may seem too complicated or hazardous. You can start by carefully understanding. The potential for larger returns on your investment and the development of financial discipline are two of the top reasons to invest in the stock market. For instance, investment in stocks has produced a greater rate of return over the past ten years when compared to fundamental saving products like fixed deposits. Periodic investments help you develop disciplined financial habits by motivating you to set aside money and invest it sensibly. How to Invest in the Share Market in September 2023? On the stock market, you cannot make direct purchases or sales. You must use stock brokerage firms that permit you to trade using their platform or brokers who are licensed to operate on the market for this. The procedure is easy:
Read more