What is life insurance?
The insured amount to be paid, by the insurer, on death of the
person is called Insurance. Life insurance is a protection plan
and is regarded as the main tool of financial planning. Life is
uncertain and it is always good to insure as it would help the
other family members or dependents.
The life insurance company insures the person for a specific
amount. The amount of premium depends upon how many years and
amount to be insured (coverage). Age also is a factor while
considering a life insurance policy. The person who is insured
should provide all the information correctly including his
health position, as life insurance is an agreement between both
the parties and is also called as a contract in good faith.
The insured should provide all the details like age, family
history, health etc correctly. The amount of premium is very
very low compared to the amount, which would be provided in case
of death. Life is uncertain and to protect your dear and near
ones it is advised to take a life insurance policy.
There are two types of insurance policies, one is term insurance
and the other is permanent insurance. It is important to plan
and decide which policy your family needs. You have to take into
account the amount of loans, mortgage etc before you decide on a
life insurance policy.