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.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.Most common reason for delaying this is lack of time and this makes us lose valuable time which can help us accumulate corpus.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.
The beneficiary needs to file a death claim with the insurance company by submitting a certified copy of the insured’s death certificate.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.Seek advice on pre-death benefits and deceased beneficiary payouts and these can be clarified by your insurance company or the agent that deals with your life insurance policy.
Take out life insurance while you’re young and healthy
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
Do some online-research to compare various life insurance cover packages and narrow down your options.
Make sure you are not under-insured
Many life insurance policy holders are under-insured and most are not even aware of it.
Beware of very reasonable policies
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 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 various questions:
What would happen to your loved ones if you died tomorrow?Would they be able to afford to pay for your funeral, your debts and your medical bills? Would they be able to afford to support themselves in terms of monthly bills, school fees, rent or bond repayments and medical aid? If any of these questions make you uncomfortable, you know what to do.
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.