Life insurance is commonly known as life assurance. It is an agreement between the consumer and the insurer, where the insurance company promises to pay a specified amount which is also known as the sum assured in return of premium, in the case of the death of the policyholder. The payment regarding terminal illness and critical illness depends upon the norms of the insurer. The consumer pays a specified premium amount in lumpsum or at regular intervals. Expense such as a funeral can also be included in the same.
If we think practically, the requirement of having an insurance plan changes every few years due to increment in responsibilities. A bachelor with his working father doesn't have much need for a life insurance plan. However, once he gets married the need of having a suitable insurance policy will arise. For a married person who has kids and dependant parents, it becomes a must-have thing. Every policyholder should review his plan's features on a regular basis so that it is coherent with the current needs. Major factors such as marital status, earning power of the person, age in the family have to be considered for new life insurance needs. You must plan wisely for your life insurance, it should neither be an excess of your necessities, nor less than what you should have. If you are getting insured for less, then your family may have to bear the burden of expenses in case you are not around to take care of them. Likewise, with an expensive insurance plan you would waste a lot of your savings that you can use for some other purpose.
Multiple methods are available that can help you in knowing or calculating your insurance needs. Depending on your earning potential and your ability to pay out regular premium amount from your salary, the insurance policy should be able to:
For an independent future, you need to consider a retirement plan for maintaining a respectable living standard and be able to meet the increased medical expenses. It is advisable for you to take the pension plan at an early stage of life, it will help you in getting lower premium amounts. As you secured all your basic and future needs, you would also want to increase your wealth. Judicious financial investment planning can help you in determining the goals related to wealth and the right path to reach it wisely. The life insurance plan that you have can help you in increasing wealth corpus by negating the effects of inflation.
You can use life insurance premium calculator to know the ideal amount.
When policy holder dies, a intimation regarding the claim should be sent to the insurer as soon as possible. The nominee and beneficiary can do the same. The claim intimation should have the details about the date, place and cause of death. The insurer has the duty to check it out as early as possible and assit policyholder's family in completing the formalities of the claim.
The claim intimation should contain information like the date, place and cause of death. The insurance agent has the duty to help the life assured's family/ assignee to deal with the insurance company to fulfil the formalities for a claim.
Apart from this, medical attendant's certificate, police inquest report, post mortem report, employer's certificate, etc are required. You can compare life insurance online to get the best life insurance company which have good claim ratio.
Insurance is the subject matter of solicitation
Disclaimer: The information displayed on this website is of the insurers with whom our company has an agreement. The prospect's particulars could be shared with insurers.