How to Ensure Your Life Insurance Benefit Will be Paid
Nobody wants to deal with the fact that we pass away at some point, and most of us would rather stick our heads in the sand when it comes to death.The fact is that we have to deal with death, whether we like it or not, especially for the sake of the ones we leave behind.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.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.
A minimum of thirty days is allowed to review the claim as per IRDA regulation, after which the benefit can be paid or denied or postponed for additional information.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 is essential to accurately provide the right documents on time, to expedite your process and claim the benefits faster.
Take life insurance while you are young and healthy
By doing this will save you substantially compared to taking out life insurance when you’re older and have dependants.
Compare as many options as possible
Do some online-research to compare various life insurance cover packages and narrow down your options.
You shoud not be under insured
Don’t avoid looking at worst case scenarios, such as what would happen if you were to pass away tomorrow.
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 issues
When applying for life insurance, be sure to stick to the facts and don’t try to change information in an attempt to get lower premiums.
Ask yourself these 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?They should be able to answer all the questions.
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.