Key Points to Consider before Taking out 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.Very few instances occur when the company takes more than sixty days to claim the benefit after the death of the insured, subject to their requirements and needs to confirm the claim.An insurance company will make sure that the claims are verified and not fraudulent.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 and contrast the options
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
Many life insurance policy holders are under-insured and most are not even aware of it.
Beware cheap 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
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 too many 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.