Life insurance is a strategic financial tool that helps you or people dependent on you in case of an emergency. Are you planning to for life insurance? If yes, here are some important factors to consider before you proceed further. Have a look at them below:
Life Insurance Is For Financial Safety
If there is anyone in your family who is depending on you for financial help, then life insurance is very important for you. In case you are all along and reliable stable after retirement or if no one will get affected after you die then you can ignore the life insurance.
Life Insurance Is A Contract
Life insurance is a contract between an insurance company and a person. The insurance company pools the premiums from the policyholders and the claims are paid out in case of an event like death.
Major Role Players Of Policy
Four primary players play a major role in any of the life insurance policies. These are an insurer, the insured person, owner, and the beneficiary. The insurer over here is the insurance company who will pay the claims in case of death event. The insured person is the one on whose life the policy is depending on. The policy owner is responsible for payments of the policy amount. The beneficiary is the one of will get the claim in case the insured person dies.
Know What Will And Will Not Be Covered In The Policy
Before you buy a policy, make sure that you are clear in what cases the insurance can be claimed and when it cannot be. For example, some policies do not cover death due to suicide, military services, and airplane accidents, etc.
Select Reliable Insurance Provider
Always go for the best insurance company like Generalinsurance.com where the process of claim is easy, and you will not have to face any issues.
Types Of Life Insurance
The life insurance is divided into two major categories- permanent and term insurance. The term insurance is very simple and clear and is used widely. It is very less expensive as well. In this, the policy premium is based on the certain death probability of the insured person for example in next 10, 20 or 30 years. You need to renew it regularly after the term is over. Unlike this, permanent life insurance is one that is for the entire lifetime. It provides financial protection for the entire life till the time policy is in force.
Cost Of The Life Insurance Plan
Different factors affect the cost of the life insurance policy you have. For example, the term insurance has lesser amounts to be paid as they are for specific periods. Many other factors come into consideration while deciding on the cost of sex, age, lifestyle, and health, etc.
These are some simple yet effective points that you must be aware of before you go for life insurance. So have proper knowledge of all the factors associated with the insurance policies and then go for the one that suits you according to your budget and lifestyle.