Why Your Family Should Know About Your Life Insurance Policy?

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Why Your Family Should Know About Your Life Insurance Policy?

Why Your Family Should Know About Your Life Insurance Policy?
  • 5th Nov 2020 |
  • 7,123

Life is highly vulnerable. Moreover, in the current pandemic situation, uncertainty has startled the world. In such times, a secure insurance cover is an unparalleled need. For a bread earner, the security of the family in his or her absence is the prime responsibility and also the main cause of worry. Hence, for such times, a life insurance policy proves its metal.

But what if an unfortunate event happens, leaving your family to struggle financially because they do not know about your life insurance policy? Thus, buying the policy is not the end of it. The insured should also inform the family about the policy.

Reasons why the family should know about your life insurance policy:

1. Prior knowledge will enable the family to make a timely claim: The basic purpose of a life insurance policy is to be able to safeguard the family’s financial wellbeing in case of the demise of the insured. However, to provide financial support to the loved ones, you must make them aware of the plan, and the details such as insurance provider, term, the sum assured, etc. This will help the family make a timely claim after your demise. Without this knowledge, the beneficiary might not be able to submit a claim and get the benefits. A person cannot claim the benefit of a policy, which he/she never knew existed.

2. The insurance money could be used to meet immediate and major family expenses: A major use of life insurance policies is supporting the family to meet big expenses such as paying off debts, setting up a business, paying the mortgage, etc. However, this is not possible if the family is unaware of the policy and how to claim the benefits. Moreover, in some cases, the family might even require funds to pay for funeral expenses. Hence, knowledge about the insurance policy, its provider, broker, claim process, time, etc. should be explained well to the beneficiary or a close and reliable relative.

3. The sum received can be effectively used to fulfil your wishes rather than the beneficiary’s: Having an insurance policy can support the family in your absence. The usage of funds depends on the discretion of the beneficiary. In many cases, the funds might not be utilized to the best capability or in the right source or as per your desires. Moreover, the usage might be biased as per the beneficiary’s wishes. Hence, it is important to inform the family about the policy and also explain your desires regarding the estate, distribution of funds or usage of money, if any.

4. The family could use insurance sum to pay off any existing liabilities: Death is a sudden event and one that no one expects.In case of the untimely demise of the insured, the family is left with the obligation to the pay off the existing liabilities. This can cause unnecessary burden on the family in extreme times. Also, if the beneficiary is not informed about the insurance policy, this can increase the crunch in those situations. Hence, to be sure the family is secured and can pay off current liabilities easily, you should inform the nominee about the policy and the claim process.

5. Advance security offered by insurers could be used to pay for funeral expenses in a traumatic time: The aftermath of the death of the insured can be incredibly stressful and traumatic for the family. In those times, the additional duties of funeral and last rites can be even more emotionally demanding. This situation can be eased with an effective insurance policy. Many insurance providers offer advance security to help with funeral costs and other expenses. But to claim this security, the family should know about the policy and the benefits it offers, so that the claim can be made in time.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Think About Life Insurance Sooner than Later

Voluntary Life Insurance Policy Vs Group Life Insurance

What is Sum Assured in Endowment Policy?

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

5 Smart Steps to keep in mind while buying term policies

Types of Life Insurance Or One Investment, Many Options

Life Insurance Policy Closure

Can a Term Plan be the Substitute for a Retirement Plan?

What is the Current Trend in Term Insurance?

Is Life Insurance an Investment?

Various Term Insurance Premium Payment Options Available in India

जीवन बीमा पर ऋण

Why You Should Never Cancel Life Insurance Policy

Reasons Why Term Insurance Claims Get Rejected

All About Backdating in Life Insurance

In India, should NRIs purchase life insurance?

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

What is Group Insurance?

What Is Staggered Payment Option Under Term Insurance Policy?

All about Life Insurance Calculators

What is Insurance Coverage? Overview, Types, and Examples

Life Insurance for Millennials

Is It Time to Review Life Insurance Policy of Yours?

Life Insurance Beneficiary

What Is Investment Insurance?

What Should One Expect During the Medical Evaluation for Life Insurance?

Term Life Insurance vs Accidental Death Insurance

Why Online Term Insurance Plans Cheap?

Life Insurance vs Mutual Funds

When are Millennials required to take out a life insurance policy?

5 Ways to ensure faster settlement of claims

Do Your Financial Planning with Life Insurance!

5 Common Life Insurance FAQs and Answers

Life Insurance for Overweight Applicants

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Important Life Insurance Terms You Must Know

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Do Life Insurance Premiums Increase Every Year?

Biggest Life Insurance Myths

5 Reasons Why You Need Life Insurance in College

6 Different Types of Insurance Policies

5 Benefits of Gifting Life Insurance Cover to Your Spouse

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

How To Use Different Types Of Life Insurance For Retirement Planning?

Term Insurance Tips for NRIs in India

Difference Between Term Insurance and Endowment Plan

Top 5 Common Life Insurance Myths and Facts

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Why Life Insurance Is Always a Smart Decision

5 Easy Steps to Buying A Policy

Process of Filing A Claim For Life Insurance

Insurance Changes You Need to Make Post Marriage

How Often You Must Review Your Life Insurance Policy?

Why do I Need Life Insurance?

जीवन बीमा क्या है?

How to Make Death Claims on Life Insurance?

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

Always keep your Nominee informed

Life Insurance with Money Back vs Without Money Back

Compare Different Life Insurance Products Offered By Kotak Life

How to Calculate Human Life Value(HLV)?

Types of Life Insurance Policies in India

What Is Social Impact Investing and How Does It Benefit Society?

Digital Life Certificate for Pensioners Seeking Pension

Benefits of Term Insurance with Critical Illness Rider

Why do most Indians choose the wrong way to buy life insurance?

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

How to Buy a Life Insurance Plan?

How to Buy a Term Life Insurance Online

Why Do Life Insurance Agents Avoid Selling Term Plans?

How Does Life Insurance Work?

Life Insurance Plans for Women

5 Advantages of Life Insurance Going Digital

Why Renewal of Term Insurance Plan is Important

Nominee in insurance - A Complete Guide on nomination in insurance

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Life Insurance for Overweight Applicants

Types of Insurance You Must Invest in for Secure Future

How to Choose Life Insurance for All Ages?

Does Life Insurance Pay for Suicidal Death?

All about IRDAI

Term Life Insurance Vs Money Back Life Insurance

Customer Awareness on Information Security

What Is Financial Planning?

5 Things to Consider Before You Buy Life Insurance

“Life” Insurance or “Death” Insurance?

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

Choose the Nominee of a Term Life Insurance Plan Wisely

Best Insurance Plans in India

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Can An Individual Buy Multiple Term Insurance Plans?

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

5 Reasons Why a Women Should Buy a Life Insurance

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

ULIPs: Suitable for all

What is Life Insurance?

Why Buying a Term Insurance is Important for all Parents

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

6 Things You May Not Know about Life Insurance

How Much Life Insurance Cover Do I Need?

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

Loan Against Life Insurance Policy

Important Features of a Term Insurance Plan

Choosing Between Short-Term & Long-Term Insurance Plans

A Step-by-Step Guide: How To Make An Investment Plan?

How to Customize Your Life Insurance Policy with Riders

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

All About Life Insurance and How It Works?

How to Choose a Life Insurance Policy

Insurance Vs Investment - A Guide to Your Financial Goals

Difference Between ULIP and Endowment Plan?

Take 100% Responsibility of Your Family with Term Life Insurance

First Job? Here’s Some Tips on How to Manage Finances

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

What are robo-advisors in insurance?

What Happens If I Stop Paying My Life Insurance Premium?

Health Insurance VS Life Insurance

Most Common Life Insurance Riders to Enhance Your Existing Policy

How To Choose The Right Life Insurance

भारत में जीवन बीमा पॉलिसियों के प्रकार

How to Revive the Lapsed Life Insurance Policy?

7 Superficial Reasons People Avoid Buying Insurance Online

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Does Family History Affects your Term Life Insurance Rates?

Is It Advisable To Have Multiple Life Insurance Policies?

What Is the Procedure to choose a nomination in life insurance policy?

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Terms and Conditions of Term Insurance Plans

How Much Life Insurance Costs and How Much Insurance Cover You Need?

Guidelines for Linking Aadhar and PAN to Insurance Policies

Different Types Of Life Insurance In India

What is Underinsurance & The Dangers of Being Underinsured

Important Terminologies of Life Insurance

Staying Insured While Investing

NRI Premium Payment Options

क्या जीवन बीमा एक निवेश है?

10 Most Frequently Asked Questions - FAQs on Term Insurance

Life Insurance Vs. Mutual Funds Investment

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Role of IRDAI in the Insurance Sector

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

What are the Benefits of Endowment Policy?

What Is a Whole Life Insurance Plan?

Why One Must Buy Term Insurance before 25 Years

Why is Medical Test Important While Buying a Term Insurance?

Term Insurance Claim Process

When Should You Review Term Life Insurance of Yours?

Is Life Insurance For Millennials Really Needed?

Can NRI Buy Life Insurance in India?

What is the Difference Between Limited and Regular Pay Insurance Plan?

Beware of Phishing & Fraud Insurance Calls

Different Types of Insurance Policies in India

Term Plan with Return of Premium (TROP)

All about Your Rights and Duties While Buying Life Insurance Policy

Should You Buy Life Insurance After Getting Married?

Life Insurance and Retirement Planning

What is a Single Premium Term Plan and its Tax Benefit?

Difference Between Money Back and Endowment Policy

Choosing a Life Insurance Beneficiary

How to Find the Best Term Insurance Plan in Seven Steps

How Much Life Insurance Do You Need?

A Term Insurance Guide for Disabled People

Can You Transfer Life Insurance Policies to Another Company in India?

Guide for Buying Online Term Insurance Plans for Senior Citizens

9 Most Important Things You Must Learn About Paying Life Insurance Premium

5 Things to Keep in Mind While Buying Life Insurance Policy

What is Human Life value and a Human Life Value Calculator?

What Is Insurance Rider and It’s Benefits?

Health Insurance VS Life Insurance

Does Life Insurance Policy Cover Covid Death?

Who Is A Nominee In A Life Insurance Plan?

Kotak Life Claim Settlement Ratio

How Do Term Insurance Plans Differ for Smokers?

Sabse Pehle Life Insurance

FAQs on Life Insurance

Key Things to Review in Your Life Insurance Policy Document

What is an Endowment Plan?

Adding A Child to Your Life Insurance Policy?

Role of Life Insurance in Your Financial Portfolio

What is Minimum Life Insurance Policy?

Difference Between Insurance and Assurance?

How to Choose the Right Life Insurance Policy for Your Age?

Is it Worth Buying Disability Rider on Term Insurance?

Life Insurance and Millennials

Does Life Insurance Cover Terminal Illness?

How Many Insurances Should I Have?

Why Term Insurance for Women is Important?

Details Required To Be Filled In A Life Insurance Form

Everything You Must Know About ULIP Riders

Term Insurance Vs Life insurance: Small Details, Big Differences