Why Your Family Should Know About Your Life Insurance Policy?
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.

  • Kotak E-Invest Plan

    Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.

  • Icon for Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the security of your income continuing thru your life and in your absence throughout your spouse's lifetime!

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability.

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Back

Why Your Family Should Know About Your Life Insurance Policy?

Term Insurance Quote
  • 5th Nov 2020
  • 6,546

Why Your Family Should Know About Your Life Insurance Policy?

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.

- A Consumer Education Initiative series by Kotak Life

Also read

  • Why You Should Never Cancel Life Insurance Policy

    Thinking to cancel life insurance policy. Then consider the uncertainties in life, what about the financial security of your dependents in your absenc...

    Read more
  • All about Life Insurance Calculators

    Life insurance calculator helps you to figure out the amount of premium to pay for a certain insurance plan. Click here to know how to use life insura...

    Read more
  • In India, should NRIs purchase life insurance?

    Buying life insurance for NRI is an important investment. It protects your loved ones back home from any financial crisis if any unfortunate happens t...

    Read more

Related Plans

  • Kotak Sampoorn Bima Micro-Insurance Plan

    Kotak Sampoorn Bima Micro-Insurance Plan

    Kotak Sampoorn Bima Micro Insurance Plan is a single premium plan with fixed term of 5 years to cater to the needs of low-income customers.

    Know more
  • Kotak Raksha Group Micro Insurance Plan

    Kotak Raksha Group Micro Insurance Plan

    Kotak Raksha Group Micro Insurance Plan is a protection oriented plan that aims to cover the socially and economically weaker sections of the society....

    Know more
  • Kotak e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more