Sounds simple, Life insurance pays benefits to the beneficiary listed on the life insurance policy in case of death of the policyholder. But the payments are not issued automatically when life insurance companies are not informed immediately when their policyholders die. Just like in any other insurance, you have to file a claim if you wish to collect the benefits.
Intimate your insurance representative or broker. He or she can help you fill out the necessary forms and act as an intermediary with the insurance company. Although your insurance professional can assist you with the details of filing your claim, you will find it helpful if you keep all the policy papers ready beforehand.
If you do not have an insurance professional or do not know who the deceased's representative was, you can directly deal with the insurance company. Call or write to its nearest office to ask about the procedure that should be followed. As a beneficiary, if you need to collect the benefits of a life insurance policy, filling out paperwork is probably the last thing on your mind. Life insurance companies and life insurance brokers try to make the process as easy as possible, however there are certain pieces of information and documents that are required to make the claim. You will need to provide to the life insurance company or life insurance representative: ·An original, or certified copy of the policyholder's death certificate · Proof of identity as the beneficiary ·A familiarity with the policy so that you are aware of your payment choices Generally the life insurance claim process is very quick. You complete a proof of death form and attach the death certificate. If there is more than one beneficiary for the life insurance policy, you will each need to fill out your own forms as part of the same claim. Once the claim is submitted, you should receive a settlement in fairly short order. You may receive a lump sum or installments, according to your choice or the policy owner's prior decision, or you may be able to leave the proceeds on deposit. The money will accrue interest until it is withdrawn. The insurance company will handle the settlement as instructed. The only thing that can really hold up a life insurance claim is if the death certificate is a copy or is invalid
Monday, August 3, 2009
Top 10 life insurance tips
1. Figure out what you are looking for, tax benefits (best and assured returns only), some risk cover for you or your family (in case the worst happens), or mostly long term investment (Child / Pensions etc)? Here we advice linking to market, as long term market mostly return higher than fixed. For short term we advice fixed returns.
2. Once you decide what and how much you wish to invest. This is a balance between how much you wish to invest and how much cover or return you expect.
a.How much do you wish to invest / what is your capacity to invest? Get some benchmarks based on your income from a broker.
b.What is a sensible cover for you? Again speak with a broker / advisor.
3. Once you are clear about the above two, explore the companies that provide policies you are looking for. This is available at aggregators or brokers only. Never buy from an agent, they will sell one company only.
4. Check out the hidden costs, especially in investment products like ULIP where there may be allocation charges, handling charges etc. Ask a broker for help.
5. Always buy from a broker, ask for their license number, and check it on the IRDA website. These brokers are independent; they get paid as per the policy they sell, so they are not inclined to push one over the other. An agent on the other hand sells just one company, and hence will always push that company and its benefits.
6. Insurance is not just a tax saving instrument, it protects the financial aspects of you and your family against any mishap, so plan properly.
7. Early investment in Insurance will reduce the premium cost, yet you will get the same coverage. For eg. buying life insurance at 20 is cheaper then buying at 35.
8. Premiums become costly if you use tobacco and alcohol, give it up, it will help retain good health and help reduce the premium.
9. Be truthful and accurate in your declarations on the proposal form. That will ensure the payment when you have a genuine claim.
10. There is a lack of information in the market, so put everything in writing, or check it on a reputed website. Never trust anyone, unless it is documented, and or you have an audit trail.
2. Once you decide what and how much you wish to invest. This is a balance between how much you wish to invest and how much cover or return you expect.
a.How much do you wish to invest / what is your capacity to invest? Get some benchmarks based on your income from a broker.
b.What is a sensible cover for you? Again speak with a broker / advisor.
3. Once you are clear about the above two, explore the companies that provide policies you are looking for. This is available at aggregators or brokers only. Never buy from an agent, they will sell one company only.
4. Check out the hidden costs, especially in investment products like ULIP where there may be allocation charges, handling charges etc. Ask a broker for help.
5. Always buy from a broker, ask for their license number, and check it on the IRDA website. These brokers are independent; they get paid as per the policy they sell, so they are not inclined to push one over the other. An agent on the other hand sells just one company, and hence will always push that company and its benefits.
6. Insurance is not just a tax saving instrument, it protects the financial aspects of you and your family against any mishap, so plan properly.
7. Early investment in Insurance will reduce the premium cost, yet you will get the same coverage. For eg. buying life insurance at 20 is cheaper then buying at 35.
8. Premiums become costly if you use tobacco and alcohol, give it up, it will help retain good health and help reduce the premium.
9. Be truthful and accurate in your declarations on the proposal form. That will ensure the payment when you have a genuine claim.
10. There is a lack of information in the market, so put everything in writing, or check it on a reputed website. Never trust anyone, unless it is documented, and or you have an audit trail.
What is Health Insurance?
The term health insurance (popularly known as Medical Insurance or Mediclaim) is a type of insurance that covers your medical expenses.The concept of health insurance is new in India but its awareness is growing fast. Health insurance comes in handy in case of severe emergencies. Life is unpredictable, insurance can make it safe and secure from bearing huge financial loss. A health insurance policy is a contract between an insurance company and an individual. Sometimes it is associated with covering disability and custodial needs. The contract is renewable annually.
Health insurance is affordable and carries the assurance and freedom from insecurities that threaten normalcy now and then. The type and amount of health care costs that will be covered by the health plan are specified in advance. Health plans are available in two formats, individual and group plans. In an individual policy you are personally the owner of the policy. While in a group plan, the sponsor owns the policy and the people covered under it are called its members.
Health insurance is affordable and carries the assurance and freedom from insecurities that threaten normalcy now and then. The type and amount of health care costs that will be covered by the health plan are specified in advance. Health plans are available in two formats, individual and group plans. In an individual policy you are personally the owner of the policy. While in a group plan, the sponsor owns the policy and the people covered under it are called its members.
Types of Life Insurance Policies
We cannot control the uncertainties of life, but we can cover the risks surrounding us. Life insurance is the cover for the risks that we run during our lives. It protects us from the contingencies that could affect us in a big way. There are two kinds of life insurance policies namely the term life policy and permanent life policy.
Term Life Policy
Term life insurance policy covers risk only during the selected term period. Under, Term Life contract the insurance company pays a specific lump sum to the designated beneficiary in case of the death of the insured. These policies are usually for 5, 10, 15, 20, 25, 30 or 35 years. Term life insurance is very popular in advance countries but is not so in India . However, after the entry of the private operators and aggressive marketing by some players this product is becoming popular. The premium on such policies is comparatively lower when compared to the whole life insurance policies, mainly because these policies do not carry the cash value. The drawback of the policies are, if one survives the period of the policy, the insured does not get any return at the end of the policy. The premium on such policies becomes expensive with age mainly because the risk of death of is higher with age. Once over 60 years, these policies become difficult to afford. If the premium is not paid within the grace period, the policy could lapse without acquiring any paid-up value. These policies help fetch tax saving benefits.
Term Life Policy
Term life insurance policy covers risk only during the selected term period. Under, Term Life contract the insurance company pays a specific lump sum to the designated beneficiary in case of the death of the insured. These policies are usually for 5, 10, 15, 20, 25, 30 or 35 years. Term life insurance is very popular in advance countries but is not so in India . However, after the entry of the private operators and aggressive marketing by some players this product is becoming popular. The premium on such policies is comparatively lower when compared to the whole life insurance policies, mainly because these policies do not carry the cash value. The drawback of the policies are, if one survives the period of the policy, the insured does not get any return at the end of the policy. The premium on such policies becomes expensive with age mainly because the risk of death of is higher with age. Once over 60 years, these policies become difficult to afford. If the premium is not paid within the grace period, the policy could lapse without acquiring any paid-up value. These policies help fetch tax saving benefits.
What is life insurance?
Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to reimburse the occurrence of the insured individual's death or other event such as terminal illness or critical illness. The insured agrees to pay the cost in terms of insurance premium for the service. Specific exclusions are often written in the contract to limit the liability of the insurer, for example claims related to suicide, fraud, war, riot and civil commotion is not covered.
What you should not do in case of road traffic accident claims or car accident insurance claims in India.
Accident is inevitable and anyone of us can be its victim. Car accident can be of different nature, it can be due to collision or non collision. An accident can bring life to an end. If you find yourself in such circumstances, do the following. Firstly calm down, secondly get medical attention or help if necessary, thirdly respect the police and their efforts. Do not make an immediate statement to the police or to any insurance company. Let the police know that you will speak to them later after you have calmed down and sought medical attention. Lastly contact a professional to make sure before proceeding with your matter further.
It means that if the party who injured you can show that you were in some way at fault in causing the accident, then your claim can be denied. Speed can be used as contributing factors to deny an injury claim. Even if the other party is more at fault than you, it can jeopardize your claim. Most people are not looking at their speedometer at impact. Therefore, mostly people guess at their speed. At the scene of an accident, you may be confused and shocked, be in pain and you may be angry. Mostly you may not be accurate and the insurance company will rely on that statement to evaluate your case. Just avoid making any statement at such a painful time. Visit the closest hospital and get a thorough check up done. Make your statement at a later date mainly after you have had time to calm down and reflect. During this course get in touch with your insurer and confirm the coverage and the claim procedure.
Your small statement can reduce your chances of getting the claim processed. Keep the steps mentioned below in mind to avoid complexities in case of car accident.
1. Do not give any statement immediately after the accident.
2. Do not sign anything unless you fully understand what it is.
3. Do not accept the blame if you think it is not your fault.
4. Do not lose your temper.
5. Do not use bad language.
6. Do not behave aggressively.
It means that if the party who injured you can show that you were in some way at fault in causing the accident, then your claim can be denied. Speed can be used as contributing factors to deny an injury claim. Even if the other party is more at fault than you, it can jeopardize your claim. Most people are not looking at their speedometer at impact. Therefore, mostly people guess at their speed. At the scene of an accident, you may be confused and shocked, be in pain and you may be angry. Mostly you may not be accurate and the insurance company will rely on that statement to evaluate your case. Just avoid making any statement at such a painful time. Visit the closest hospital and get a thorough check up done. Make your statement at a later date mainly after you have had time to calm down and reflect. During this course get in touch with your insurer and confirm the coverage and the claim procedure.
Your small statement can reduce your chances of getting the claim processed. Keep the steps mentioned below in mind to avoid complexities in case of car accident.
1. Do not give any statement immediately after the accident.
2. Do not sign anything unless you fully understand what it is.
3. Do not accept the blame if you think it is not your fault.
4. Do not lose your temper.
5. Do not use bad language.
6. Do not behave aggressively.
What is Car Insurance?
Car insurance (also known as auto or motor insurance) is done to protect your vehicle from unforeseen risks. It basically provides protection against the losses incurred as a result of unavoidable instances. It helps cover against theft, financial loss caused by accidents and any subsequent liabilities. The cover level of Car insurance can be the insured party, the insured vehicle and third parties (car and people). The premium of the insurance is dependent on certain parameters like value of the car, type of coverage, vehicle classification; voluntary excess etc. Car insurance gives confidence to drive peacefully. In emergencies it acts like a boon to the insurance holder.
With so many car insurance companiesvying for customer base in the market, it is quite difficult to make a decision like choosing the right policy and insurer. Figuring out the right insurance policy, fulfilling the requirement and being cost effective can be time consuming. Many a times car insurance may seem complex but having it saves you spending a fortune later. At policybazaar you can compare car insurance quotes online and save up to 40% on your premium.
With so many car insurance companiesvying for customer base in the market, it is quite difficult to make a decision like choosing the right policy and insurer. Figuring out the right insurance policy, fulfilling the requirement and being cost effective can be time consuming. Many a times car insurance may seem complex but having it saves you spending a fortune later. At policybazaar you can compare car insurance quotes online and save up to 40% on your premium.
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