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.

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