Life Insurance
Life insurance is a deal between an insurance policy buyer and an insurance policy provider that states that the provider is obliged to pay a sum of money in case of the death of an insured individual or after a pre-determined period of time. Life insurance serves to secure your family members’ financial state in your absence. All insurance kinds are primarily concerned with saving up your budget for a significant benefit in moments of crisis when the sum is needed the most. Life insurance also follows a similar theme but works on an insured person’s life.
Types of Life Insurance Policies
There are 2 primary kinds of predominant life insurance policies; Pure Protection and Protection Savings.
- Pure Protection life insurance, is simply a complete payment of the sum to your family members.
- Protection and Saving Plans, are much more widespread. Other than covering your life insurance, it also includes long-term plans for buying properties and other savings for family support.
Insurance Premium Rate Determining Factors
A few important aspects that the insurance policy provider checks before determining your insurance premium are:-
- Health State: Insurance premiums cost more if you have had a record indicating poor health and if you are at potential risk of recurring diseases. People with better health are, naturally, charged less.
- Age: The price of your insurance contract will also increase if you are older as compared to younger policyholders.
- Gender: Concrete Research has proved that women live longer than men, so women usually avail cheaper insurance policies.
- Family Tree: If several of your family members are suffering from, or carry certain diseases, the chance of the disease running in the family is high. In such scenarios, insurance premiums cost more.
- Degenerative Habits: If the individual has habits such as smoking, drinking, etc., the health condition is bound to be short-lasting. Premium providers charge more in such scenarios.
- Coverage sum: The greater the pre-determined sum, the more the insurance premium would cost.
- Nature of Profession: If the individual works at high-risk posts, such as chemical exposure, lineman, etc., the premium would cost more as compared to safer occupations.
Key Benefits of Having an Active Life Insurance
Life insurance is thoroughly taken interest in, because of the vast benefits it can provide to the policyholder.
- Life insurance secures the future of the family of the policyholder, and he can attain peace of mind that his family will be stable in his absence.
- Life insurance can also offer a way for you to save your set aside budget so that you can invest it suitably.
- Life Insurance savings plans can help you to avail of sums after regular intervals to improve your lifestyle.
- Several kinds of tax benefits are also achievable through life insurance.
- Any sort of tragedy strikes, e.g. in the form of the early demise of the insured, the policy provider will cover up the financial situation of the household, thus aiding the family when needed.
Life insurance is a good form of investment when you are worried about the household after the sole earner of the household expires. Like all forms of insurance, life insurance helps you in pinchy situations when absolutely needed.
