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When considering long term financial planning for your family, life insurance can be one of the best tools you can use to ensure financial security for your family members. Most people are aware of the general idea behind life insurance, such as it is a lump sum the amount which is paid when an insured person has died. But people are often confused about the specific details and this paper will address some of the important details related to life insurance.

Life insurance is generally paid to the family of the deceased person. However, other people, such as friends or relatives, could also be named as beneficiaries in the original insurance policy. It is recommended to file a claim as soon as an insured person has died. Most insurance companies try to pay within one to two months after a claim has been filed. The claim should be supported by official death certificate.

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