How Does Life Insurance Work when You Die?
Want to know now how does life insurance work when you die at old age or when you pay for insurance premiums and died at a young age. You are now investing, the question is; are you insured? Do you know how does life insurance work when you die?
Getting insured is easy nowadays, you can request a quote online and compare the prices from different companies. Awhile ago we have discussed about how to invest money and what are the things to prepare before investing. One of those things we mentioned is health insurance and life insurance. I do believe you didn’t ignore the importance of an insurance.
Note: This page is for informational purpose only. InvestmentTotal.com admin don’t claimed as an insurance expert. You need to talk to a certified financial planner or any insurance agent.In this page, you will need to understand the different terms used;
Life Insurance
Insured
Insurer
Insurance Policy
Insurance Premium
Benefits. Beneficiaries
In investing we consider life insurance as an income protection. If you are the breadwinner of the family you should have insurance. If something bad happen to a breadwinner (like accident, sudden death or total disability), his family will never worried financially since they (the beneficiaries) will receive benefits (specified amount of money) from the insurance company.
Q&A. How Does Life Insurance Work When You Die
1. How to buy life insurance? – You can simply shop life insurance online, but it doesn’t mean you don’t need to visit the office of the insurance company or meet a representative or insurance agent.
2. What are the requirements in buying life insurance? – You need to give medical certificate or medical check up if necessary or required by the insurance company. Some government IDs and the money as a payment for your insurance premium.
3. How much face amount should I need? – You have to ask yourself and think about this; if you died today, how much money should your family will need within 3 or 5 years to recover from financial losses? To calculate the ideal face amount, just multiply your annual income into how many years of recovery you want to give your family.
4. I bought life insurance, now what? – As I have mentioned awhile ago, it has a great role not just to you but to your whole family as well, especially if you are the breadwinner of the family.
5. Who are my beneficiaries? – The beneficiaries are the ones who will receive the benefits (the one who has the rights to file a claim). You can make your parents, spouse and kids as your beneficiaries.
Other questions about how does life insurance work when you die? You can write your questions in the comment box below. Hey, do you know that you can save a lot of money in buying insurance by price comparison. And also, buy only what you need. You have to research the best types of life insurance and decide which one should you get. Thank you for reading!