Introduction
Insurance of life is provided by life insurance companies to individuals as a long term investment which span beyond retirement or death. Insurance of life pays a lump-sum amount of money to the insured’s beneficiaries after his death. The main products of insurance of life are term life and permanent life policies. Insurance of life guarantees your beneficiaries a normal life after you have died.
History
Life insurance companies have tailor-made life products to cater for specific individual needs. Traditionally, insurance of life products were designed to provide income to your dependencies after you have died. Nowadays some of the life policies like the life endowment pay out on maturity even if you are still living. Insurance of life is source of income your beneficiaries after you passed away.
Features
Term life policy specify the period of cover and the period which you should pay premiums and the policy only responds if you die during the term of the policy. This policy has an expiry date, of which your beneficiaries can only claim from an insurance company f you die when the policy is running otherwise nothing will be paid after the expiry date. The premium charged is a fixed amount for a specified period of time and the policy has an option of renewal.
Another common type of insurance of life is permanent life which does not have an expiry date and the policy is active until you die. The premiums are paid throughout your life but it this product is now tailor made, that you can pay premiums up to a certain age. Your beneficiaries are guaranteed a lump-sum pay-out from the insurance company after you have died as long as you pay the premiums are stipulated by the policy. Permanent life products are categorized into whole life, endowment, limited pay, variable life insurance and universal life. The most common types of permanent life insurance are whole life and life endowment. Whole life provides insurance cover until you die and premium is paid throughout your life and on the other hand life endowment specify the insurance period with an option of paying lump-sum money on maturity or the option to renew it. Life endowment can be viewed as a form of investment because you can get a lump-sum of your investment on maturity even if you are still living.
Insurance of life policies pays out a lump-sum of money to your beneficiaries if you die, depending on the type of the policy.
Tips and Comments
Insurance of life is very important because we are all aware that one day we will die, thus it is ideal to plan for the future of your dependencies. The life insurance products provide a source of income to your beneficiaries and guarantee them a normal life after your death. The process of taking a life insurance policy is simple and no medical examination required. Also, it is important to note that the procedures of claiming are very easy and the insurance company requires proof of your death from your beneficiaries as well as their identities. Insurance of life is a good investment, if you have people that look upon you.
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