What You Need To Know About Insurance Life Policy

Introduction

An insurance life policy is a long-term insurance product that provides financial protection to the insured’s beneficiaries if he dies. It pays a lump-sum amount to the insured’s beneficiaries after his death. What you need to know about insurance life policy include the types of life insurance products, insurance companies that offer the product you require, premiums payable and the payout amount.

History

Life insurance policy is provided by life insurance companies across the world to provide financial protection to the policy holder’s registered dependencies after he dies. Life insurance policy products have been tailor made to suite groups of people with homogeneous needs. The top life insurance company which comes to one’s mind is Old Mutual which has offices and branches across the world.

Features

It is important to know life insurance products so as to choose the best life policy which suite your specific needs. Notable insurance life products are permanent life, term life, whole life cover and life endowment. It is your duty to know what each policy covers for example term life provide financial protection to the insured’s dependencies if he dies during the term life of the policy otherwise it will expire. This is opposed to the whole life policy which provides cover up until you die and the premiums are technically paid through-out your life. If you know how each insurance life policy works, then it is easy to choose the best one for you. Premiums are required on an annual or monthly basis depending on your contract of insurance for you policy to remain active. It is very crucial to know how much you will pay as premiums and for how long. Some policies like the term life policy require premium payment up the expiry date or up to the pay-out date which is your date of death whereas other policies like whole life policies requires you to pay the premiums through-out your life. Besides the premium payable, you also need to know the payout amount and how it is paid out to your dependencies as well as the effect of tax. Most life policies pay a certain once off percentage as a lump-sum and the balance is payable monthly.

What to know about an insurance life policy include the required information to take out the policy such as if medical examination is a requirement or not. Again, the information required when your beneficiaries file a claim like your death certificate. If you want to take a life insurance policy, you need to know the companies that offer the type of product that your want. Closely related is the reputation of the company in terms of their balance sheet as well as their ability to pay claims on time with no hustles. Think of Old Mutual and how they are rated world-wide.

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