Do you know about life insurance policy?It is a contract between the policyholder and the insurer.Under the contract, the policyholder to pay premiums at a certain time. In return, the insurer will pay the agreed sum to the beneficiary if the policyholder dies.When you take a life insurance company mutual entrusted to you. Policyholders should always provide correct information to the insurer can make a fair assessment of the risks involved. Once you sign the insurance policy is important for you as the policy carefully read all the fine print in the document to ensure that you understand the contents and the types of risks covered.
What is Life Insurance Policy
Life insurance policy is a contract with an insurance company. In exchange for premiums (payments), the insurance company provides a lump-sum payment, known as a death benefit to beneficiaries in the event of the insured’s death.
Typically life insurance is chosen based on the needs and goals of the owner. Term life insurance generally provides protection for a set period of time while permanent insurance, such as whole and universal life, provides lifetime coverage.
It’s important to note that death benefits from all types of life insurance are generally income tax-free. (fidelity )
If a person has life insurance, the beneficiary named in the policy will receive total compensation in the event of his death. It helps to protect the family’s financial resources on the policyholders in the event of death or unavoidable accidents. Life insurance can help in terms of money for beneficiaries in desperation. Purchase a life insurance policy is a long-term commitment to prepare to provide additional income for the days of old age. Therefore, it is best that you do not cancel your policy before the time set for a maximum return sealed the deal.
Life insurance has its origins in the old practice of saving money for one’s own funeral costs, and is called also life assurance.
As you get older, premiums steadily increase. Level-premium term has somewhat higher – but fixed – premiums for longer periods, anywhere from five to 30 years.