Why Is Life Insurance Necessary?

Although a few do believe there are ways to prevent death, their belief is shattered by the alarm ringing each morning. You wake up to the monotony of a hazy Monday, grab a quick bite, and walk towards your office a few blocks away. As you cross the street, the thoughts of facing your boss for the next five days molest you, while the rear-view mirror of a speeding Porsche entices the driver to try her new shade of lipstick. The next thing you know, you’re seated next to the devil laughing his guts out, showing you reflections of your grieving wife, your girlfriend and her children.

Piggy Bank

How you wished you had a life insurance policy that would provide for that family. Yes folk’s, life is uncertain. It wasn’t you seated next to the devil but it could be you in the near future. Even if you’re the charismatic kind of a guy destined to reach heaven, wouldn’t you want your family to benefit from the life insurance policy in the event of your death?
A life insurance policy is a safekeeping for future needs for your family or beneficiaries in the event of your death. A life insurance policy ensures that the insurer pays the beneficiaries of the insured, in the event of that insured person’s death. The sum of money mentioned is also paid to the beneficiaries if the insured is suffering from a terminal illness. In simpler terms, it is a contract between the insurer and the policyholder. The policyholder is required to pay the insurance company a lump sum or the required amount of premium at regular intervals. The nature of life insurance policies is the same the world over but for a few variations relating to funeral proceedings being covered in life insurance policy.

In the event of the insured individual’s death, the beneficiaries need to submit valid proof in the form of the death certificate. It is mandatory that the claim form of the insurance company be completed. The form requires to be signed by the person receiving the amount and also need to have a notary stamp. If the amount on the policy is large and the insured has died a suspicious death the insurer has every right to investigate the events that led to the death of the insured, before paying the claim.
Once the claim form is duly signed and submitted by the beneficiaries to the insurer the amount is paid as a lump sum or in the form of recurring payments for a specific period of time or lifetime depending on the clauses stated on the policy.
It is always good to have life insurance coverage because you know that in the event of your death the proceeds and benefits of the policy will come in handy for the nominated people in the policy. If the thought of planning a life insurance policy hasn’t occurred to you, it’s time you act fast and plan your future for the benefit of your loved ones.

Source: http://www.steffinsurance.com/why-is-life-insurance-necessary.php

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