LIFE INSURANCE AWARENESS. WHY SHOULD YOUR FAMILY KNOW ALL ABOUT LIFE INSURANCE?


Introduction

The uncertainty 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 main responsibility and top concern are making sure the family will be protected when they are not there. So, 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, in order 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 submit a claim right away on an incident occurring. 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 claim, then some benefits may be missed or delayed. Also, the family can on occasion require cash to pay for immediate expenses for example funeral expenses. Hence, it is crucial to fully describe the insurance policy to the beneficiary or a close and reliable family member, including its provider, broker, claim process, period, and other details.

The life insurance claim amount can be used to fulfill the dreams of the beneficiary: Plans for life insurance assist in achieving the future aspirations and financial objectives of the policyholder in the event of survival and maturity benefits, as well as supporting the family and realizing the aspirations of the beneficiary in the absence of the primary breadwinner. 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, any outstanding debts shall be paid by the insured's family. 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 is able to easily settle current debts, you should explain the policy and the claim process to the nominee.

CONCLUSION

In order to give your loved ones, financial help, you must inform them of the plan and its specifics, including the insurance provider, term, sum assured, etc. After you pass away, this will enable the family to file a claim quickly.

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