Three things to do after buying a term insurance policy

Term insurance policy protects the family in case of the sudden demise of the insured. It provides a monetary protection so that the family’s financial needs remain on track. While insurance cannot fill the vacuum created by the insured’s death, it can certainly give a financial cushion to the aggrieved family sailing them through uncertain times. It is therefore very important to buy a term insurance policy.

Your responsibility, however, does not end with just buying a term insurance policy. Even after buying the policy, you need to take a few more steps so that your family doesn’t remain devoid of financial support at that critical time. Here are a few things you must do after buying a term insurance policy:

Inform your family members

As soon as you buy a term insurance policy it is important to let your family members know about the policy. They should know about the details of the policy and what all it offers. The little exercise can help them know about the financial well-being of the family. You should also let your family know about the policy documents. The place where all the important documents are kept should either be known to your spouse or other family members.

Create an e-insurance account

At times it gets difficult to keep all these documents secured in one place. You should therefore create an Electronic Insurance Account at the time of filling the proposal form. Through this account, all your insurance documents remain at the same place in digital form.

Digilocker holds insurance policies too but you cannot transact. Recently Insurance Regulatory and Development Authority of India (IRDAI) has asked insurers to issue digital policies to their policyholders to keep the documents in digital form through DigiLocker. It is an initiative under the Digital India programme by the government where citizens can get authentic documents/certificate in digital format from original issuers of these certificates.

Take your nominee through the claim process

This conversation might be difficult to start but take your nominees through the claim process. They should be made aware of important documents that are needed while filing a claim. If you have bought a policy through an agent, you should share the contact details of the person so that they know whom to contact for help.

The above-mentioned small steps can help your family steer through the tough times.