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.Insurance is no doubt most important and unavoidable and as we start earning, the first thought that strikes our minds is to get a life insurance.Most common reason for delaying this is lack of time and this makes us lose valuable time which can help us accumulate corpus.Young people with no family would also greatly benefit from taking out life insurance cover, especially when they have taken out co-signed loans for instance, or if they have siblings or parents who could do with financial support.
The beneficiary needs to file a death claim with the insurance company by submitting a certified copy of the insured’s death certificate.A beneficiary needs to take a few important steps to ensure that the death benefits are paid out to them as quickly as possible.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 insrance while you are healthy and young
It is important to take out life insurance cover as early as possible, preferably when you’re still young and healthy and before your have a family that relies 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.
Make sure you are not under-insured
Do your calculations and determine how much money your beneficiaries would need.
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 truth
Life insurance companies do thorough investigations before approving applications and of course, before paying out large claims.
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.