Life insurance is a kind of insurance and an agreement between two parties, one is insurance company and the other is policyholder. What is life insurance? Very simple and understandable answer to this question is financial security and the financial protection will be given in most sensitive moments. It works on give and take policy. Pay the life insurance premium and the insurer gives you back this money.
Life Insurance
Life Insurance is an insurance cover that provides money to beneficiaries after the death of a policyholder as a death advantage. This insurance cover has been established to secure the financial losses even after the death of your loved ones. What is life insurance? Life insurance looks after the finance matters that your family members will face at your death. This cover will provide the funeral expenses to your family.
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Life Insurance Premium
The money that you will be charged by the insurance company is called Life insurance premium. This amount of money will be secured till the policyholder’s death. After the death of policy owner, this premium will be given to the insured family members for managing the expense of last days.
Life Insurance for a Child
Life insurance for a child is a financial cover that will be provided at the sudden death of a child. Generally, this policy purchases by the children parents for covering the last expenses. Mostly people love to purchase the term life insurance policy for their child because this policy is cheap and easily available for children between 10 and 20 years of age.
Life Insurance Benefits
The other word that you can use at the place of Life insurance benefits is death benefits. The list of life insurance benefits is given below. The first and paramount benefit of life insurance is financial support in the most needed days. Other most important benefit of this cover is estate planning. Many other life insurance benefits are tax-free cover and peace of mind.
Life Insurance Beneficiary
The person who will receive the amount of life insurance after the death of a policyholder is called the Life insurance beneficiary. The beneficiary could be selected by the policyholder at the time of buying this cover. If he does not select the beneficiary, then his spouse or legal children can get this money as a beneficiary.
Related post: Allianz Life Insurance
Life Insurance Business
Life insurance is a financial help, but sometimes the insurance companies invest the money in business activities. They generate the profit for paying back the amount to policyholder. Life insurance business seems a great support for giving the financial help to insured.
Life Insurance Broker
Life insurance broker plays an important role for assessing the client’s requirements and needs. A broker is a professional entity who works for both sides, either business firm or client. Life insurance broker works on the premises of wide range of facilities. The broker assists in finding the policies, gives useful advice to client and also assess in the process of underwriting.
Life Insurance Comparison
Life insurance comparison is a method of comparing different life insurance policies and its types. This method help you in finding the suitable insurance cover according to your need and budget plan. Compare the policies and find the most suitable one.
Life Insurance Calculator
Life insurance calculator is a way to help you to decide which cover is most useful and reliable. By using life insurance calculator, you can get the comprehensive detail about your coverage. This calculator will assist you to know the present financial status, future needs, and range of coverage, insurance amount and comparing plans.
Life Insurance Deductible
Deductible method has been most commonly used for property and accidental insurance. You cannot get your premium as a deductible, but the decided amount in life insurance. The amount of policy depends on the following elements like occupation, age of the insured person and the health of a policyholder.
Life Insurance Death Benefit
Life insurance death benefits includes financial help. Death is fated, and it is unavoidable, but you can provide a big amount to your family member even after your death. Beneficiary can use this amount for any function like the funeral cost, debt payments and other financial amenities.
Life Insurance Exclusions
Life insurance includes many beneficial services for supporting the clients, but it has some exclusions as well in its policy cover. Life insurance exclusions mean unavailable cover. This policy prohibits you not to use unhealthy items, otherwise you will be excluded from the life insurance policy. Some exclusions are suicide attempt or suicide, using drugs substance and other dangerous activities like skydiving.
Life Insurance for Seniors
Life insurance for seniors is a coverage that can be used to meet the requirements of a senior person. But you must know about the starting years of seniority. Seniority starts from the age of 50 and so on. Generally seniors buy the life insurance cover for different reasons like financial assistance, paying funeral costs and leaving an amount of money for next generations.
Life Insurance for Stage 4 Cancer Patients
Life is a beautiful and precious gift of God, that’s why you have to protect it from all other harmful events. Life insurance for stage 4 cancer patients is available with limited coverage. Yes, you can get Life insurance for stage 4 cancer patients. This cover may cost you more premium because of the health risk. Even after the diagnoses, companies offer this cover for providing financial help.
Life Insurance for Couples
Life insurance for couples is available for both the partner under same policy and also gives death benefits like financial back up on any of the partner’s death. There are many other benefits of couple’s life insurance policy and these benefits are cost-effective, easily achievable and estate planning.
Life Insurance Policy Loan
Life insurance policy loan is an amount of money that has been increased with the payment of premium to the company. Clients can get this money for paying the unintentional expenses, for purchasing home and interest. But you must know that the loan may decrease the coverage of the death benefits.
Frequently Asked Questions (FAQs)
How life insurance works?
Life insurance can also be called as a death benefit. Life insurance works on the condition of providing money to the beneficiary after policy owner death.
What is life insurance, in simple words?
Life Insurance is an accordance between the insurance agency and a policyholder. In this agreement, an insurer guarantees the payment that is included in the premium at the death of the policyholder after the decided period.
What is juvenile life insurance?
Juvenile life insurance is the fixed and constant life cover that guarantees the life security of a baby. The cover which is under 18 is considered as a juvenile life insurance. This cover also gives the financial guidance.
What is the main purpose of life insurance?
What is life insurance and why it is so much important? The importance of life insurance can be checked by the security it provides. The most important purpose of life cover is to minimize the intensity of destructive financial damages. This cover provides the financial security to your family after the death of policy owner.
What are the 3 main types of life insurance?
Life insurance has many types with different names and coverage. The kinds of life insurance but the most general types are Whole life insurance, term life insurance and Universal life insurance. These types work on different criteria.
Why is life insurance haram in Islam?
Islam explains everything in detail because it is a complete code of life. Islam prevents you from gambling because it is prohibited in Qur’an. Islam also prohibits all other transactions where some elements of gambling appear. Life insurance policies contain the fundamentals of gambling and uncertainty, that’s why it is strongly prohibited in Islam.
Which type of life insurance is best?
There is nothing more important than life, that’s why you should invest in the betterment of future life. The cheapest and reliable life insurance type is Term life insurance. If you have less budget, then buy the term life insurance policy. But the whole life insurance is effective for big families. Universal life insurance works on economic planning and cash money.
What are the advantages and disadvantages of life insurance?
Get a Life insurance policy and stay satisfied because it offers the main and utmost advantage after someone’s death. This cover provides a financial assistance to beneficiaries to pay the cost of funeral and other ceremonies. You should not think about the disadvantages because the advantages are many to avail. But its main disadvantage is the payments that you need to pay on monthly, annual basis.
What are the principles of life insurance?
Life Insurance operates to shelter the financial loss and provides financial assistance to the family at the death of the policyholder. The principles of life insurance are six and these principles are contribution, subrogation, indemnity, proximate cause, perfect faith and insurable interest. These principles have been designed to meet the requirements of clients.
How to calculate life insurance?
Calculation of life insurance is must because it will keep you aware about your yearly income. Calculate your yearly income and after calculation multiply this income by 10. Check out this example and know the exact coverage. If you are earning, 50000 annually then you need to multiply it by 10 and get the total coverage amount.
Who really needs life insurance?
Life insurance policy is the best cover that provide help in most crucial time of anyone’s life. But the question of who actually need this cover is the couple. The couple those have children are highly suggested to buy a life insurance policy from trust able insurance company. Business owners should have this cover for the protection of their economic legacy.
What is a good age to get life insurance?
Age is the most important factor to get the cost-effective life insurance policy. As the life of a customer increased, then the value of an insurance policy will also be increased. Health risks increases with the increasing of age. Don’t wait to purchase a life insurance policy because age is the factor that may increase the rate of life cover. At the age of 20 it will cost less money than 40 years or more.
