Importance To Buy Insurance Life

Introduction

Today, there is no shortage of investment options to secure your uncertain future. You can invest in gold, fixed income generating instruments, invest in real estate, mutual funds but still many prefer to buy insurance life policies. You may ask me why people prefer to buy insurance life policies when there are so many other options available in the market with higher rates of return.

The simple and immediate answer to your question will be, there are varieties of life insurance schemes available each of which are designed in a way so that they fit perfectly as per the requirement of the insured. Life insurance policies are the only investment options with this tailor made option. There are many other investments available in the market with much higher rate of returns, but there you have to make full payment to get the full benefit, otherwise if you pay a part of the whole investment or few installments amount you will get only proportionate benefit as per your payment.

In life insurance policies, if an insured dies after paying a single premium or after paying few initial premiums if he satisfies other terms of the policy of the contract, his dependents or nominee will be entitled to receive full benefit under the plan, There is no other investment options with this unique feature and this is perhaps one of the main reason for investors to buy insurance life policy.

History

The few benefits to buy insurance life policies as per the age and requirements of the insured are mentioned here.

The Insured is below 25 years of age and unmarried:

Safe investment for asset creation through different insurances and life policies

The Insured is around 25 years of age and married:

Safe investment for asset creation through different insurances and life policies for protection of uncertain events

Married and have children:

Sound investment policy, protection for uncertain events, asset creation and to make provision for children’s education and marriage.

Features

When the insurance is above 40 years of age and have family and children:

Sound investment policy, planning for a happy and secured retirement, protection for uncertain events, asset creation and to make provision for children’s education and marriage.

Life Insurances policies are protection plans where the insurers or the insurance companies agrees to compensate or indemnify the loss caused by the death of the insured from causes acceptable under the plan against payment of periodic or onetime payment known as premium. However, the term compensate should not used in life policies because compensate represents an exact amount. The correct future value of a person or the remaining length of a person’s life had he not died (the insured) is impossible to assess.

If you want to buy insurance life policy for your future need you should know that there is no particular insurance product that suits all. Every person is different with own problem, requirement, and resources. One product can never be the ideal and most suitable for all.

 

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