What is life insurance? Learn about 2 kinds of life insurance
Not everyone has the right to life insurance. But if your child, partner or other family members are dependent on your income only for living, then you need life insurance. It will help you to spend your family after your death. Many insurance companies in our company such as Islami life insurance, American Life Insurance Company, popular life insurance Company, Prime Life insurance, National life insurance company etc.
What is Life Insurance?
Life Insurance Policy is basically a type of contract with an insurance company. Premium payment In return, the insurance company provides a one-time payment that is known as ‘Death Benefit’. After the death of the payment insured person, his family may suffer.
Life insurance will protect you and your family from future risk. And it will give your family future expense after your retirement or death. Life insurance is a long-term investment in that case.
Depending on the insurance category you purchased, the amount of insurance paid. Moreover, you can decide how the money will cost, or whether it will be applied in a specific case (mortgage, rent).
The money you pay for life insurance depends on many things. Just how much is the amount of money you want to keep for the family or the amount of life insurance policy stability it also depends on your age, health, and lifestyle.
There may be different kinds of life insurance. Normally the person will choose life insurance based on his needs and intentions. Let’s not know about the current life insurance policies.
- Term Life Insurance
Such insurance is operated for a specific time such as 5, 10 or 25 years. Insurance is less costly than permanent life insurance. This insurance can be used as an alternative to your LPI (Lost Potential Income). And it will help you to meet the financial goals of your family, such as financing the mortgage, keeping the business running, and spending education costs. However, it should be remembered that although this insurance is said to be an alternative to potential income, it only provides one-time payments. The term life insurance benefit is that you will not have to spend unnecessary money on your family financially self-sufficiency.
- Whole Life Insurance
This Life Insurance is a type of permanent life insurance. There is no fixed term for insurance. Whole life insurance is more expensive than the term insurance. Here the life insurer has to pay the life insurance premium. After the death of the insured, his family can enjoy a certain amount of money mentioned in the insurance policy. If your family depend on your income, you can try to get a whole life insurance policy. This policy secured your family future life.
So think of this, how much insurance will you make for the future financial certainty of your family?