Understanding Life Insurance – a very important thing for the family
Each one of us is living in a world in which every-thing which is around us is quite uncertain. We cannot get assured of anything; everything tends to get change any moment of time. Things are quite uncertain when it comes to us. Now if we take an example like we leave for our office during the day time and we are quite healthy, we have made up a mind that today I am going a certain amount of work in a limited time span. But suddenly while going for the work we meet with an accident and we find our self in a hospital. Then what we all can do?
Therefore this is very much essential that one should definitely endure himself under some life insurance policy. This not only covers the deed when we meet with some accident but also helps us in the natural calamity. This is a very beneficial thing if looked upon very carefully. People who endure themselves in such policies lead a very peaceful life, because they know that if something is going to happen to them then there is someone who can pay his hospital bills, which is very important in today’s era. It is seen that with every life insurance policy there is something undercover. Meaning to say is that every life policy comes with two parts the first one is the death benefit and the second one is the cash value. In the death benefit system it is very much obvious that the beneficiary would get the whole amount of the money if the person dies who was the owner of the policy. Therefore in other words we can comprehend that the person who is the nominee of the policy usually gets the whole amount after the death of the person who is holding the policy. The second one is the cash value. In this we come across a fact that if a person wants that his money should be returned before his death then he should ask for it. The money will be returned on the bases of the calculations that are carried out by different policy norms. Thus these are some of the common points which the life insurance company carries out. Here are some of the common types of the life insurance policies which we can see:
The Whole life Insurance policy
In this type of policy we come across a strange fact that there will be no control over the premiums that are been paid by you. Although one will definitely get the money back as soon as the death of the person who is the owner of the policy takes place. The beneficiary will get the whole money in a lump sum manner.
The variable life Insurance policy
In this we see that the investments play a very vital role in the terms of the policy. The more a person invests the better will be the results.
The Universal Insurance policy
In the universal policy we see that the rate of premium can be altered if a person is wishing to do so.
The extent up to how much can insurance policies cost a person?
It is a well a known fact that the least beneficial policy is been offered from a person who will be the employer or that group of people who are working in the cooperate sector and giving the policies to their employees. The cost varies from policy to policy depending upon the type of the policy one is buying the time duration of that policy which a person buys. Usually it is seen that those bunch of people buy heavy bulky policies that have high risk of their health. Who tend to suffer more from more dangerous diseases, such kind of people pay more for these policies.
While buying an insurance policy one should deeply study the norms of the policy because there are often some hidden facts about the policy, which do not come under the light until the expiry date comes. Therefore one should be very much careful before buying such policies. One should consider his legal advisor before investing his hard earned money in the stuff which is not going to bring any fruitful result in the near future. One should also make it a point to see that the advisor is not mingled up with the insurance company, and for making their benefit creates your loss.
It is seen that major insurance companies do not offer anything for the senior citizens who’s age extends from 69-72, but there are some chances that they would offer such policies to them but then they would charge high rate of interest or in other words charge high premium. There are several types of policies which are available in the market two of them are listed below:
- The first one is the joint Insurance policy.
- The second one is the single Insurance policy.
Now other facts which one needs to understand the basic difference between the guaranteed and the Re-viewable coverage. In the very first one we come across that the guaranteed plan has much more crucial premium levels. That would mean that the longer is the duration of time of the policy coverage the lesser amount of premium one has to pay. But this thing depends from the company to company. That would mean that the policy norms will be decided according to the company and not according to one own will. Then there are terminal policies which covers the terminal illness regarding anything. But again there is a twist in the sentence and that is the illness is to be decided according to the insurance company and not by the person’s choice.
Life Insurance Conclusion
Thus over all we have seen that how there are different policies that come in to practice. There are all sorts of people present in the society who buy these policies according to their own will, people buy policies which would benefit them in their own way. Therefore now before buying any Life Insurance policy one should go through all the deeds which the Life Insurance company is providing..