Life Insurance is a Powerful tool that protects your family and loved ones in case of your death and provides financial stability to them. We all don’t know about the next future of life and and no one can predict live that what is going to happen in next moment. So if you are married and have kid or you have a responsibility of your parents or family. For your wife, children and parents, you need to pay heed to their future life also. Because they are your responsibility.
It is also very crucial to make a safety net like make a plan about their future education and how they would fulfill basic needs of life if you lose your life. So, to provide them financial protection, Life Insurance helps you a lot. Although they would receive this financial benefit after you pass away from the world. But still it is a very powerful way to make their future life easy. And it will help them to face the challenges of life.
Imagine! the main head of your family die and he was the main earner who was bearing all the expenses of your family, and the expenses of your education, needs of life, food. You were fully depend on him. So, in case of his death, how would you survive. This would going to be tough for you and your family. But the head of your family has ensured a life insurance, it will protect you and your family and it will bear all the expenses from medical bills to the cost of funeral.
What is the concept of life insurance?
Life Insurance is basically a type of insurance and it is like a contract between the insurance company and person who is going to hold insurance. This person will pay to Insurance Company according to the cover of insurance he would select. And insurance company will make sure to provide the death benefit to your children and family in case of you passed.
You can keep the beneficiary according to your choice like the person to whom you want to make his or her life safe and Secure, if you go away from the world.
Choose a policy first then after choosing the right policy, you have to pay premium on monthly quarterly or annual basis.
You can choose coverage like if you want to get 10 years or whole life. You can select the coverage of insurance according to your need. If you want to get coverage for short time, you can select term life coverage. The time of coverage vary. It may be from 10 years to 30 years.
but if you want to get the coverage of life for your whole life, you can also select the permanent life coverage.
What are the principles of life insurance?
The main principle of life insurance is to protect the beneficiaries of policy holders and to make their life safe, in case of policy holder’s death. They make sure to help your beneficiaries and play a fair role by providing a system to help them a death benefit.
There are lot of principal of life insurance some of them are:
1: The main principle of life insurance is you can only make beneficiary from real connections like the person who is financially depend on you. It includes your children, parent, or wife.
2: You can only get the death benefit in case of death. Death benefit will be paid if you passed away from the world.
3: The 3rd main principle of life insurance is, keep in mind that it would not make your beneficiary rich. Your beneficiaries will get the amount only you have selected.
4: Death benefit will be given to your family if you die accidentally or real death. If someone caused it, the insurance company will take a legal action against them.
5: You both should be honest and provide them the true details about your health and Insurance Company should provide you the real details of their company and policy. Be honest.
What are the five Life Insurance?
There are different types of life insurance and with a lot of categories. But some of the most important type of Life Insurance that I am going to discuss in this articles has a great importance. If you are willing to choose a life insurance, you can read all the type and categories of life insurance to chose the best category for you.
Here are five types of life insurance:
1: Term insurance
2: Whole insurance
3: Universal insurance
4: Variable insurance
5: Group insurance
1: Term insurance
Term insurance is the type of life insurance in which you can select the period Of the coverage of the life insurance. Like if you want to select for 10 years, you can select the term Life Insurance. The term Life Insurance main contain a period of 20 years or 30 years. The main principle of time insurance is it will pay you the death benefit if you face death in your chosen period of time If you have selected life insurance for 20 years and in these 20 years you have passed, insurance company will pay the death benefit to beneficiary. It is suitable for income replacement or mortgage protection.
2: Whole insurance
Whole insurance is also type of life insurance in which Insurance Company provide the protection for whole life. Your beneficiary can get the death benefit in anytime of your death occur. It does not matter whether in which period Of time, it will provide the death benefit regardless of any phase of life it occurred.
3: Universal insurance
Universal insurance is also type of life insurance which contains both term and life insurance in which you can select the premium payment. It is a more flexible way in which you can adjust the death benefits with the specific limit.
4: Variable insurance
Variable insurance is also type of life insurance but it is suitable for those who can bear the risk. This type of insurance has greater risk. Because the value of cash is linked with stock market.
5: Group insurance
Group insurance is another type of insurance which is suitable for the employees. Different work places offers employees to the benefit of getting of insurance and it is affordable for the employees.
You can get this type of insurance according to your eligibility and their requirements.
Read out the more about Insurance, Here is our previous blog