Be Informed on Life Insurance Coverage
Insurance coverage is always an important financial tool for all individuals and is often quite necessary and sometimes legally mandated. However, life insurance (aka “life assurance”), is the one type of insurance product that an individual obtains specifically to ensure their loved ones will never suffer the fate of financial insolvency or difficulty.
Good life insurance is extraordinarily helpful for just about everyone; note that it is essentially a contract between the insurance company and the policyholder in which the provider promises to make payments to the beneficiary or beneficiaries death benefits upon the passing of the policyholder. The policyholder, in exchange, will need to have made regular and consistent premium payments (or pay in the form of a lump sum). The benefits will generally also include payouts for any and all funeral expenses.
Life assurance coverage is designed for all who are above 18 years of age. Conveniently, it only requires just a moment for a person to apply for this terrific kind of coverage. The premium that is paid will depend upon the policyholder’s age and health. As such, a young person will pay a lesser premium as opposed to an older individual. When completing the application form, applicants will need to provide details such as their name, weight, health, lifestyle, income and, often times, their family health history as well.
As mentioned, after acceptance the policyholder will be obligated to pay the premiums. The insurer then agrees to provide compensation to beneficiaries any death benefits upon the policyholder’s death. (Policyholders will initially need to provide the names of the beneficiaries who will get these benefits.)
There is a myriad of life insurance plan choices. These include “term” life insurance plans, pension plans, unit-linked insurance coverage, participating and non-participating insurance plans. Term insurance plans provide coverage for a given term or time period. The participating plans have non-guaranteed and guaranteed benefits for beneficiaries and allow for policyholders to receive potential profits as a boon. In a non-participating insurance plan, the policyholder can see their savings grow, often substantially. Conversely, the pension plans offer policyholders regular income after retirement.
Life assurance has numerous pluses for the policyholder, such as life coverage payouts, tax savings, long-term saving plans and planning for one’s financial future.
With good life insurance, one is not only able to provide death benefits to their beneficiaries after they pass, but these are vehicles than can help the policyholder to save money over time. It is, one might say, a “no brainer” for all above the age of majority to consider acquiring quality life assurance.