Life insurance is a contract between an individual and an insurance company where the insurer promises to pay a designated beneficiary a sum of money upon the insured person’s death. It’s a financial protection that covers outstanding debts and funeral expenses. And most times, it offers financial security to the insured’s dependents.
Why You Need Life Insurance:
Life insurance is essential because it ensures that your loved ones are financially protected in the event of your passing. It provides peace of mind knowing that your family will have the financial resources to cover daily living expenses, pay off debts, and maintain their quality of life. Life insurance can also be a critical component of your estate planning, helping to manage estate taxes and provide an inheritance.
How Life Insurance Works:
Once you reach out to an insurance company, the insurer will analyse the risk associated with insuring you. You will be given health questionnaires to fill and your medical history will be analysed to get a clear picture of your associated risks. After the review, you’ll be scheduled to make regular payment as monthly or yearly premiums. The fees paid will help keep your life insurance policy active.
Upon the demise of the insured, a lump sum payment will be made to the beneficiaries. Beneficiaries are often family members but can also include trusts or charities. The agreed amount is usually stated in the policy.
Types Of Life Insurance Policies:
Term Life Insurance:
Provides coverage for a specific period (e.g., 10, 20, or 30 years). If you pass away during the term, your beneficiaries receive the death benefit. This is often the most affordable type of life insurance.
Whole Life Insurance:
Offers lifelong coverage with a death benefit and a savings component that builds cash value over time. Premiums are typically higher than term life insurance.
Universal Life Insurance:
Provides flexibility in premium payments and death benefits. It also includes a savings element that earns interest.
Variable Life Insurance:
Combines a death benefit with investment options. The cash value and death benefit can fluctuate based on the performance of the chosen investments.
How We Can Help:
If you have set up a life insurance policy and you need a professional review we can help. Even if you don’t have a life insurance policy setup, we can also help. We will offer you a variety of life insurance options from top providers and guide you to choosing a favourable life insurance policy that will benefit your beneficiaries.
