Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. In life insurance, the Sum Assured or the amount guaranteed to be paid in the event of a loss is by way of a ‘benefit’. Life Insurance products provide a definite amount of money in case the life insured dies during the term of the policy or becomes disabled on account of an accident. Life Insurance is a requirement of all persons whether he/she is an income earner or a housewife or a child. An income earner needs Life Insurance in view of the economic value of their contribution to the family. Children are considered for life insurance in view of their future income potential being at risk.
Life Insurance is needed to save you from the following:
- To ensure that your immediate family has some financial support in the event of your demise
- To finance your children’s education and other needs
- To have a savings plan for the future so that you have a constant source of income after retirement
- To ensure that you have extra income when your earnings are reduced due to serious illness or accident
- To provide for other financial contingencies and life style requirements
The amount of Life Insurance coverage depends on many factors such as:
- How many dependants you have
- Whether you have any debts or mortgages
- Type of lifestyle you want to provide for your family
- your need for your children’s education
- What are your investment needs?
- What is your affordability?
Documents which are generally required to be submitted in case of death of life assured while the policy is in force
- Death certificate,
- Claim form and policy bond,
- Medical attendant’s certificate, hospital certificate,
- Employer’s certificate,
- Police inquest report,
- Post mortem report etc
could be called for, as applicable. The claim requirements are usually disclosed in the policy bond.