Always inform your family members about your life insurance policy

The Insurance Regulatory and Development Authority of India (IRDAI) in 2018 stated that, as on March 31, 2018, the total unclaimed amount stood at Rs 15,166.47 crores. It becomes clear that not all, who have taken life insurance policies, have informed the same to their family members.

You life’s hard earned income with which you bought life insurance is waisted if you do not inform your family members about your life insurance policy. It would be a sad state of affair if your loved ones who are financially dependent on you are not even aware that you have saved a lump sum amount of money for their upkeep for when you are no longer around.

This not only results in a waste of your savings but also leaves your family in the same financial crises for which you wanted to buy the cover in the first place. Even after doing all the hard work you may not yield the fruits of your labour.

Such an unfortunate event can be avoided if individuals keep their nominees, or the closest family members in the know-how of the policy details. Basic details such as the insurance company's name, terms of insurance and broker information, if any, should be kept handy with near and dear ones.

To know if the policy is unclaimed, IRDA has asked life insurance companies to provide a search facility on their website which allows the family members to know unclaimed amount through the use of Pan card or Aadhaar card. Each of these websites has a separate window of 'unclaimed number of policyholders' to know any unclaimed amount. Also, one can always visit the branch or call customer care for policy details and fill up a cheque re-issuance form along with the NEFT details and claim the money.

Alternatively, there are some other methods for a family member of the assured can get to know about their policy details. For example; Insurance companies are providing with a facility of an e-card 'I Owe You', which contains the insured's policy’s primary details like plan name, sum assured, rider name and rider sum assured if any along with the helpline number. This enables the insurance company to share this e-card with their nominee for easy reference at times of claim if any. You can also leave a personalized message for your nominee for when they receive the claim payment.

The task of protecting the future of your loved ones is not complete till the time the benefits does not reach them when it is most required. Paying the premium is only a part of the exercise. It is equally paramount for you to be abreast with your policy details, as it is to keep your family members informed about the same so that tomorrow your hard earned money does not go in vain.