As a general rule in life, you should hope for the best but prepare for the worst. You never know how things might work out, and if you’re not prepared for all scenarios, you can face a lot of complications. Life insurance is the perfect example of that preparation. Death is a topic that no one really wants to broach. However, the unfortunate truth is, death is a fact of life. If you don’t make plans for it, your loved ones might suffer greatly after you’re gone, and this is why life insurance is always something to consider. Manulife is one of the major companies working in that field, but before you go and get yourself a policy, there are some things that you need to understand.
How It Works
Manulife life insurance is based on the contract between you and the company where you pay premiums to your insurer. In exchange for those premiums, Manulife will pay your beneficiaries something called a death benefit after you’re gone. This is the whole concept behind life insurance. It helps you make sure that your family will be well taken care of in case of your untimely death. Your beneficiaries can be anyone––family, friends, or whoever you want to name in your policy, and they can use the money however they please. The death benefit is often used by the family to pay mortgages, bills, college tuition for the kids, or whatever purpose they want.
Moreover, there are some further details that you need to understand. To apply for life insurance, you have to be between the ages of 18 and 65 in most countries. The age limit is 65 because the chances of having a payout increase if you apply for a policy after that. With Manulife, you get term life insurance that is renewable after 10 years. The good news is, you can renew it until you’re 85 with no medical questions or requirements asked. However, depending on the policy you have selected, you might be subject to medical testing before you can get a life insurance policy, which is the case with many insurance providers.
Filing a Life Insurance Claim
This might be an uneasy conversation to have with your family, but you need to have it nonetheless. If you bought a life insurance policy, the beneficiaries––assuming it’s your family, for example––need to fully understand how they can claim the death benefit so they could avoid legal trouble at a time of grief. Fortunately, as the unfortunate situation may make your relatives out of focus, the Manulife claim guide can help you and your loved ones fully understand what needs to be done to get the benefit. We’ll walk you through the usual steps so you could have an idea of what to expect. The first thing that the beneficiaries need to do is get several copies of the death certificate. Then, the beneficiaries need to contact Manulife to get the necessary forms. If you are not sure how to fill them, make sure to call the company and an insurance agent will help you fill it out thoroughly.
As for the payout, there are usually several options regarding how the beneficiaries can get the money. They can ask for a lump sum payment, meaning they get the entire death benefit in a single amount. Another option would be a life income, where the beneficiaries get a steady income for life, but there are some deciding factors to it like the size of the benefit and your age at the time of its collection. One more option to consider would be letting the company keep the benefit and paying the beneficiaries an interest on them. In that case, the death benefit is kept intact and you can have it passed on to a secondary beneficiary.
Manulife offers a few financial benefits that you need to be aware of whether you’re the owner of the policy or a beneficiary. For starters, the financial benefit that the beneficiary receives is a tax-free lump sum, which means that the money you left for your family won’t be less than what you had hoped for. Moreover, Manulife keeps the rates steady for 10 years for term life insurance, so you won’t have to worry about paying higher premiums after a year or two with the company. One of the best benefits, though, is that you can convert your term life insurance to a permanent one anytime you want as long as you are under 70 years of age, and you won’t need to take any further medical examination.
In case the insured gets a terminal illness diagnosis with less than a year to live, they would be eligible for a one-time payment of up to $100,000––a maximum of 50% of your coverage. This can help you get your affairs in order and clear any debts so you can be certain that your loved ones will be taken care of after you’re gone.
Getting the Right Policy
Like most insurance companies, Manulife offers two main options for life insurance policies: term life insurance and permanent life insurance. As the names imply, term life insurance is for a specified period of time, while permanent life insurance provides you with coverage as long as you’re alive. So, which should you get? That depends on your needs. Term life insurance is better if you are on a budget since the premiums are more affordable, and it’s also suited for those who just want coverage for your years working as it can provide their families with income replacement if something happens. Permanent life insurance, on the other hand, gets you coverage for all your life and has a bigger accumulative value.
Whether you’re going with permanent or term life insurance policies, the important thing is to get one as soon as possible. Life is filled with unexpected events, and life insurance can help you gain a bit more confidence in the face of the unknown. Manulife offers great services and can help you find a policy suited for your needs, but you have to be informed about their services before getting any policy.