Unappealing and rather unnerving is the subject of death, isn’t it? Why talk about something so unappealing? Death and its consequences are the two subjects that the human race has always feared to talk about. But has any problem in the world ever been solved without deliberately discussing it? Of course not! Likewise, we cannot figure out potential ways of dealing with the repercussions of death unless we choose to talk about it and consequently plan for it.
It is strongly recommended to talk about one's death with one's life partner. Term Insurance Plans have gained a lot of popularity in India and continue to be one of the bestselling insurance products out there. Many Indian householders opt for term plans for their high coverages and relatively lower premiums.
Although going for a term plan may well be one of the smartest financial decisions one ever takes towards protecting one's family from financial uncertainties, it is a task only half done if one hasn't communicated with them the procedure to file a claim when the need arises and what other money moves need to be made. So, to save one's family going through a tough time amid the mental and emotional trauma that they will be going through already, it is recommended that one acquaint their spouse with the points mentioned here.
- Get the Death Certificate – The Death Certificate is one of the most important documents that your spouse requires. It is needed for legal purposes and even other institutions like his insurer, bank, credit card company, and employer will ask for it. So, one must first register the death with the concerned authority and obtain the Death Certificate and keep several copies of it so that they’re handy when required.
- Call the insurer and inform them about the demise – It is very important to notify all the important institutions like the employer, the bank officials, and of course the insurance company of the unfortunate demise. While informing the insurance company, make sure to obtain the necessary details to begin claim application.
- Organize all the financial documents and file a claim – Once it is certain that the policy is active, the spouse needs to gather all the financial documents that are needed to raise the claim. Organize them well and start the procedure of filing the claim. The spouse must also keep in mind that the help of the insurance agent, from whom the policy was bought, can be availed.
- Pay out all the necessary outstanding bills – Paying all outstanding bills would become very essential because you do not want the already mourning family members to suffer further with unnecessary interruptions. Electricity bill, gas bill, phone bill, credit card bill, rent (if any), should be among the first priorities and must not be pushed for later.
Go for an Income Replacement Plan rather than a Lump Sum Plan – At times, when the spouse is not financially savvy, it is suggested to go for an income replacement plan. Insurance companies have designed some life insurance products where the beneficiary first receives a certain portion of the coverage as a lump sum amount while the remaining portion is given out as a regular monthly income to take care of smaller financial needs. This ensures that the family is receiving a regular income in case it is unable to take major financial decisions soon after the demise of the primary earning member.
To conclude, you must know that your spouse and family members will already have lots of things to deal with after your death and may not be in a state of mind to think effectively when it comes to money. And they cannot become financially savvy overnight. You need to instill in them these things gradually to help them mature into better financial decision-makers tomorrow.
Last but not least, don't forget to let your loved ones know that whenever they need Claim Assistance, OneInsure will be there to assist the family in settling the claim. They can reach us at 86559-86559 or firstname.lastname@example.org.
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