The Best Bet You’ll Never Collect On: A Guide to Life Insurance Claims
Life insurance is the only policy where the insured doesn’t get to enjoy the payout - unless, of course, you are one of the [un]lucky ones that are advised you have 12 months to live. For your loved ones, it’s a financial lifeline when they need it most.
How It Works:
Once the insured person dies, the beneficiaries need to file a claim. This usually involves a death certificate, some paperwork, and a conversation with an insurance adviser.
Common Mistakes to Avoid:
Not telling your beneficiaries about the policy – Honest and open communications around death, dying and future financial planning can avoid a lot of future stress for loved ones.
Letting your policy lapse – Once a policy has cancelled – either intentionally or through non-payment, all covers cease and no benefit is claimable. This could be a bitter pill for family to swallow when they thought they may get a helping hand.
Not disclosing health conditions – Insurers don’t like surprises. They prefer honesty over mystery illnesses that suddenly appear in the medical records.
Why It’s Worth It:
A well-structured life insurance policy means your significant others can grieve without worrying about mortgage payments, school fees, and other life necessities.
