Nowadays, many people
are talking about life insurance policies and its benefits. In fact, almost
everyone opts for a life insurance policy as it offers them. So if you don't
have a life insurance policy, you need to get one soon. It acts as a cushion
you can fall back on in difficult times and protects you and your family in
different types of crisis.
Now, the biggest
question that comes to mind is what exactly is life insurance and why do you
need it. In the simplest term, a life insurance policy can be explained as a
formal contract between the insurer and the insured. Under the life insurance
contract, the insurance company assures you that in the event of death, it
would give an insured sum of money to your family. This financial assistance
can be very useful to them during the crisis.
So when you go for a
life insurance policy, it's like insuring your life. In the event of death, a
financial crisis can actually break your family apart and face difficult times.
The insurance policy money can save them from this. The amount of insurance you
receive is calculated based on the life insurance policy you purchase and the
premium you pay. The premium is a fixed amount that you have to pay at the
regular terminal.
Many people believe
that they are healthy and young and therefore will not die prematurely. For
this reason, they avoid opting for life insurance without realizing the risk
they are taking. John was only 25 years old and the sole breadwinner in his
family. He chose not to go for a life insurance policy. But Death is an
uninvited guest, he died of heatstroke one afternoon and with no savings and
life insurance policy to fall back on, his family had to face a tough time for
make ends meet. If he had gone for a life insurance policy, it would have
helped his family financially and saved them from the crisis.
Thus, death is an
inevitable and unnoticed event and one should not contest death and secure
one's life. As mentioned earlier, when you choose to take out a life insurance
policy, you are essentially providing a protective shield for your family. You
should purchase a policy based on your needs and the premium you can afford.
When you buy the
policy, you are required to appoint someone. The nominee is the person who
would receive the insured amount after your death. Most of the policy covers
accidental death and natural death. If the policyholder commits suicide, no
money is paid to his family or the nominee. Likewise, if there is a risk of
fraud, the policy amount may not be paid.
Some life insurance
policies also work like investments. According to this, they are classified
into protection policies and investment policies. The latter is treated as an
investment where the insured buys the contract and pays a premium at regular
intervals. You have to pay the premium for a certain period called the lock-in
period. Once this period has elapsed, you can withdraw your amount as well as
the interest. But if you die during the period, the amount is returned to the
nominee as insured money. These types of insurance policies therefore also help
you to grow your capital.
In the case of a
minor, parents can also opt for a life insurance policy. In this case, the
insured and the policy owner are different. Parents buy the policy for children
and pay a premium for them which makes them insured. The younger the insured,
the more advantageous it is. The amount of the insurance policy also depends on
it.
If you are young, you
can opt for a term policy where you would be required to pay the premium for a
specified period of time depending on the policy you choose. The premium amount
for these policies is higher because the returns are also better. So, you will
have to pay the premium for around 5 years or more depending on the policy you
choose.
Whichever type of
life insurance policy you choose, it is important that you pay your premium on
time, otherwise the policy will lapse and you or the nominee will not get
anything at all.
Before choosing a
life insurance policy for yourself or your family, it is important to decide
what to expect from your policy. Whether you want politics as an investment or
want your family to benefit from it. Then you also need to decide whether you
want to go for a temporary policy or a permanent policy where you have to pay
the premium for a long time.
Other things to
consider when purchasing a life insurance policy include factors like face
value, interest rate, premium amount, maturity period, etc. Life insurance is a
must for everyone and so you should go for one and protect your family's
future. You can also buy policies for your children that can be an investment
and give them a healthy future.
Put your money in a life insurance policy
Nowadays, many people
are talking about life insurance policies and its benefits. In fact, almost
everyone opts for a life insurance policy as it offers them. So if you don't
have a life insurance policy, you need to get one soon. It acts as a cushion
you can fall back on in difficult times and protects you and your family in
different types of crisis.
Now, the biggest
question that comes to mind is what exactly is life insurance and why do you
need it. In the simplest term, a life insurance policy can be explained as a
formal contract between the insurer and the insured. Under the life insurance
contract, the insurance company assures you that in the event of death, it
would give an insured sum of money to your family. This financial assistance
can be very useful to them during the crisis.
So when you go for a
life insurance policy, it's like insuring your life. In the event of death, a
financial crisis can actually break your family apart and face difficult times.
The insurance policy money can save them from this. The amount of insurance you
receive is calculated based on the life insurance policy you purchase and the
premium you pay. The premium is a fixed amount that you have to pay at the
regular terminal.
Many people believe
that they are healthy and young and therefore will not die prematurely. For
this reason, they avoid opting for life insurance without realizing the risk
they are taking. John was only 25 years old and the sole breadwinner in his
family. He chose not to go for a life insurance policy. But Death is an uninvited
guest, he died of heatstroke one afternoon and with no savings and life
insurance policy to fall back on, his family had to face a tough time for make
ends meet. If he had gone for a life insurance policy, it would have helped his
family financially and saved them from the crisis.
Thus, death is an
inevitable and unnoticed event and one should not contest death and secure
one's life. As mentioned earlier, when you choose to take out a life insurance
policy, you are essentially providing a protective shield for your family. You
should purchase a policy based on your needs and the premium you can afford.
When you buy the
policy, you are required to appoint someone. The nominee is the person who
would receive the insured amount after your death. Most of the policy covers
accidental death and natural death. If the policyholder commits suicide, no
money is paid to his family or the nominee. Likewise, if there is a risk of
fraud, the policy amount may not be paid.
Some life insurance
policies also work like investments. According to this, they are classified
into protection policies and investment policies. The latter is treated as an
investment where the insured buys the contract and pays a premium at regular
intervals. You have to pay the premium for a certain period called the lock-in
period. Once this period has elapsed, you can withdraw your amount as well as
the interest. But if you die during the period, the amount is returned to the
nominee as insured money. These types of insurance policies therefore also help
you to grow your capital.
In the case of a
minor, parents can also opt for a life insurance policy. In this case, the
insured and the policy owner are different. Parents buy the policy for children
and pay a premium for them which makes them insured. The younger the insured,
the more advantageous it is. The amount of the insurance policy also depends on
it.
If you are young, you
can opt for a term policy where you would be required to pay the premium for a
specified period of time depending on the policy you choose. The premium amount
for these policies is higher because the returns are also better. So, you will
have to pay the premium for around 5 years or more depending on the policy you
choose.
Whichever type of
life insurance policy you choose, it is important that you pay your premium on
time, otherwise the policy will lapse and you or the nominee will not get
anything at all.
Comments
Post a Comment