Wednesday, January 16, 2019

How does life insurance work?

Life Insurance helps create an insurance – the insured pays a premium in return for which the insurer promises to pay a specified amount to the former in case a specific event such as critical illness, death, disability takes place. Such insurance offers financial protection to the insured on his death or during an accident and the family members of the insured can live peacefully thereon.

Why is life insurance needed?

· To ensure that the family members of the insured have some financial support in case of his demise.

· To help the insured to finance his children’s education.

· To help create a savings plan for the insured’s future.

· To work as an added income when the insured’s earnings reduce due to any reason.

Who all needs life insurance?

If you are an individual with a family, you definitely need life insurance. However, homemakers must also get life insurance done, especially for their contribution to the family. A child too should opt for life insurance in case his future income potential is at risk.

How much life insurance does a person need?

There are many factors on which this depends. They are:

· Number of dependants on the insured

· Kind of lifestyle being led by the insured and his family

· Amount of money needed for a child/children’s education

· Investment needs

· How much premium can the insured pay

Choose the right cover of life insurance for yourself by contacting an insurance agent today.