Life Insurance Guide-Ensure your Life
Life insurance is a type of insurance that pays a sum of money
to the beneficiary of the insured person only if the premiums of
insured are in progress. It works like all other insurance
policies. In life insurance insured person ensures his life by
paying a small amount of premium.
Actually life insurance is an agreement between insured and
insurance company. Insurance company agrees to pay a certain
amount of money to insured's beneficiary in case of death of
insured. Beneficiary may claim for the policy only if the
premiums of the insured are current.
Life insurance policy offers security to the surviving family
members in case death of a loved one. Insurance company tries to
overwhelm the loss by paying a sum of money. People may buy life
insurance policy from individuals or insurance companies.
Sometimes government offers group life insurance to government
employees at no cost. Employees can obtain life insurance at
reduced rates from the insurance company of their employer.
Cost is the major factor in life insurance policy that totally
depends on life, health and occupation of the insured. It can be
illustrated as the insurance policy of 24 years old person is
inexpensive than 60 years old person. It is available in
different types such as whole life insurance, variable life
insurance and term life insurance.
Premiums in the initial stages, of the term life insurance
policy, are low but it increases gradually as the insured grows
mature. Whereas a part of each premium pays for insurance and
rest works as tax-free investment in case of whole life and
variable life insurance. Amount of premium doesn't change
through out entire policy. It is used to increase death benefit
in the end.
Premium remains same in variable life insurance. It provides
permanent protection to the insured. It doesn't offer guarantee
to amount of cash value during lifetime of insured.
Choose the best life insurance policy and make your loved ones
happy after you.