Many people get insurance because they view it not as an expense but as an investment. As an expense, getting insurance could really cost you a lot. As an investment, however, you think that every penny that you are paying is very much worth it even it means extra financial responsibility on your part. So why do people get an insurance in the first place? Naturally it is not because they can afford to spend more on a monthly basis. The reason is that they are spending today for needs that may arise in the future. They invest on one because of its beneficiary.
The question now is what is an insurance beneficiary? As the word suggests, it is the person who benefits from the insurance. In certain insurance claims, the insurance policy holder himself or herself is the beneficiary. In others, it is a family member or a loved one. To make things clear, let me set an example. If you invested on a health insurance, that means that you are paying for it now while you are healthy and well because in the future, you might get sick and your income may not be so high anymore. As a beneficiary, when that day comes, you know that you need not bother your family or friends nor worry about where to get money for medication. Your insurance policy will take care of it.
As mentioned earlier though, there is another kind of insurance policy and that is one that involves your family. Let’s say that you decided to invest in a life insurance while you are still well, when you pass away in the future leaving your family behind, they benefit from the insurance that you invested in because they need not worry about the financial obligations. The insurance policy has that covered. In fact, the beneficiary that you stated in the document will even get money upon your death. That way, you can still take care of your family even when you are no longer around.
As a beneficiary, there are certain things that he or she should know. To begin with, he or she should know the benefits that he or she is entitled to. That is why if you are a policy holder, you have to make sure that you spend time with him or her so that they are aware of what you are securing for them.
Another thing that a beneficiary should be aware of is how to go about getting your benefits. What is the point of having benefits if you have no idea how to get hold of it? Again, he or she should be aware of the company’s policies and procedures so that they can avail of the benefits that are rightfully theirs.