Have you recently bought a term insurance plan? Before you store away your policy documents safely and forget about it, there are some vital things you need to do. Here are eight things to need to do after buying a term plan.
When you buy an insurance policy, you need to inform your beneficiary and family about it so that they know of such a purchase. As the aim of a term plan is to lessen the financial burden on your family by providing a lump sum amount, they should be aware of it to make a successful claim. In case something were to happen to you, the beneficiary would know about the claim settlement process.
After you receive the policy documents, you should go through the papers to see if the terms and benefits are really what you had wanted. Doing this right at the beginning helps in canceling the policy in case the plan given to you is different.
Checking the exclusions section is a must because many things that we do not know are excluded from the policy. It is also a good practice because it brings awareness about conditions that are not covered by your life insurance plan.
It is vital to remember your premium payment due date so that you do not miss any payments. Also, regularly renewing the policy and keeping a check on your health is beneficial.
You might have bought your term plan a year ago or five years, but even in a few months, things change causing shifts in your life. This is why you need to check your policy to keep it up-to-date with details like the nominee, beneficiary, premium rates, etc. This allows room for modifications so that your family does not face any problems during claim settlement.
You should make sure that the policy documents and papers are kept safely. Also, your family and beneficiary should know about this so that they can access it in case of death.
Though death is not something you would like to discuss with your family, it inevitable and hence, has to be discussed with your family. Your beneficiary has to make a claim in case something were to happen to you so as to receive the death benefit. If your family knows the claim process, there will be no confusion and the claim settlement process will also be quicker.
A beneficiary is a person who will receive the death benefit in case of death. You can name anyone as your beneficiary, may it be a family member or a friend. But as time passes, you would want to change the beneficiary if it is your parent who has now passed away or a wife that you have recently divorced. Reviewing your beneficiary regularly enables you to update it and see if the nominated person is still the person who should receive the sum assured.