Can Your Family Face Every Future Shock? Read On To Prepare Them
It’s a difficult conversation at the best of times, but it must be done: at some point, it becomes vital to discuss a future without you in the picture. It might upset your family members, but they must be prepared to understand the implications of your absent income on their collective future. Since you wish to protect their interests, you purchase a term plan on line. This is how you can explain its importance, benefits and the paperwork.
#1 Sit them down for ‘the talk’.
It is unpleasant to even contemplate the demise of a loved one, but the idea must be pondered on if your family must secure itself from financial shocks in your absence. Sit your spouse and other family members down to explain the implications of losing your income to any unfortunate occurrence. Tell them that you will safeguard their future dreams and help them maintain the same standard of living even in your absence. At this point, explain that you have purchased a term insurance plan with the most benefits (we recommend the Saral Jeevan Bima policy and how the term plan works.
#2 Show them the documents and where you keep them.
Once you initiate the conversation about the term policy, you must explain its benefits. If you are vested in the Saral Jeevan Bima policy, for example, you have the freedom to choose the premium payment frequency (yearly/regular, limited (payment for a few years) or single (one time payment), life cover of Rs 25 lakhs, premium term from 5 to 40 years, life coverage including COVID-19 death pay-out, and tax benefits on the premiums paid and eventual death benefit (under Sec 80C and 10(10D) respectively). They can also study the policy document to understand plan benefits, riders and pay-outs in detail.
#3 Explain the claims filing process.
Your family members, or at least the nominee(s) must know how to file the claim against the policy in your absence. It will not do do file the claim wrongly, or file late, or not file at all. Filing the claim correctly helps the insurer process the request faster, so that the nominee(s) can get the policy pay-out sooner. The best term insurance plans in India can be purchased online, and even the claims process can be applied for digitally. The insurance provider lists the procedure on their website, so they can refer to that, too. Do explain that the nominee and family members are at liberty to use the pay-out as they deem appropriate – they may repay debts, set aside money for children’s education, invest a portion of it for good returns, and so on.
We hope this exercise is beneficial for your family’s understanding of how term insurance works and how to avail of its benefit when the time comes. Though it’s a grim prospect to consider, your loved ones can rest assured that you will look out for their interests even in your absence.
