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Life Insurance Concept

The statistics have proven again and again the 90% of the deaths that happen are not because of old age but due to some disease or accident. These deaths come as a surprise as they are not expected resulting in the family not being ready to handle the situation that comes next. The problem gets further aggravated if the person meeting his / her death is an earning member of the family and can be multiplied ten folds in case of him being the soul earning member. All personal finances of the family go into jeopardy. But there is a way out of this now, Life Insurance Policy.

Life Insurance policy has been formulated keeping in mind the needs of the people described above. The policy has become so famous because of its usefulness that almost everyone who has a dependent pursues it. The main aim of this policy is to surrender a fixed amount of money to the victim’s dependents (who are nominated at the time of the policy being bought). This is done to take care of their immediate needs and sustain their living so that they can plan their future. Generally, the surrendered money is enough to meet the expenses of a couple of years during which, the people have found alternate sources of income.

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The concept of buying a life insurance policy is simple to the extent that even a layman would have no problems with it, and people selling life insurance never really have a hard time explaining it. The policy is brought for a specific period of time as per the decision of the policy buyer and an amount of the policy is decided. This amount along with various other factors like the age and the medical condition of the policy holder determines the amount of the premium that has to be paid on an annual basis. In order for the policy to remain intact, the premiums have to be paid on time else the policy is diluted and the policy lapses.

In the event of the death of the policy holder, as mentioned earlier, the total amount of the policy is surrendered to the dependents. Otherwise, if he / she manage to survive the tenure, there is a provision to renew the policy, which is generally done with an increase in the premium amount or lapse the policy under which, the amount paid in premiums is given back.

Life insurance policy is generally provided in two ways. The first is the term life insurance policy under which the time period of the validity of the policy is limit and determined. The other is the whole life insurance which as opposed to the term life insurance is valid for the whole life time of the insurer. The other categorization of the life insurance policy is done in accordance to the payment procedure of the installments. It can either be paid in lump sum at the beginning (generally done as investment by many) or in installments. It is up to the person buying the insurance policy to decide on the specifications.

If you’re considering getting a life insurance policy, make sure to get life insurance quotes from multiple insurers to insure you get the best deal for your dollar!

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