Life insurance can seem complicated, but it doesn’t have to be.
What is Life Insurance?
Life insurance protects your family in case of death. It pays out a lump sum in cash depending on your needs. Insurance is designed to give the purchaser peace of mind that their dependents are looked after even when they’re not around.
Life insurance can cover you for life (known as “whole of life” insurance) or for a period of time (known as “term” life insurance). At Beaver Street Life Insurance, we are specialists in Term Insurance. It is a great choice for young families due to its low price, straightforward nature and increased flexibility.
How do Payouts Work?
If an insured person passes away, the beneficiary (typically their family) receives a cheque paid by the insurance company for the full amount of coverage. In order to receive this payment, the beneficiary must make what’s known as an “insurance claim”.
Dealing with a premature death is very challenging for the remaining family. Financial stress only compounds the difficulty. Knowing this, it’s in the best interest of the beneficiary to file an insurance claim as soon as possible. An insurance claim is often a simple form sent along with a copy of a death certificate. The quicker you make your insurance claim, the quicker the insurance company can issue a cheque.
Purchasing Life Insurance?
Life insurers rely on clients to be open and honest in their dealings. Misstatements made during the application process may lead to benefits being denied. It is important to be transparent when answering questions or providing information. If insurance is obtained under false circumstances, your beneficiaries may not receive the benefits they surely need.
Those are the basics of life insurance. It’s an excellent tool to keep your loved ones safe and needn’t be scary or intimidating. If you have more questions, please get in touch with a Beaver Street Life Insurance rep. Remember, Beaver Street is life insurance, done differently.
All credit goes to Beaver Street Insurance – Life Insurance in Ontario