What is life insurance for?

Moni2402

Active member
Do you really know what life insurance is for and how it works?

The main purpose of life insurance is to serve as a form of income for a person's heirs in the event of death. This life insurance will give income to the beneficiaries, thus replacing what the person contributed previously. The amount of the insurance will depend on the contributions, usually monthly, that you have paid to the chosen insurer. The longer and more amount you have been paying, the more policy and collection will be left for the beneficiaries.

If the person begins to insure at 35, they can keep life insurance at an attractive price or opt for a policy that provides savings with earnings to ensure a good quality of life also during retirement. It would be advisable to hire him from the age of 35. Remember that after 60 or 65 some companies do not. This insurance can be used to pay the balance of the mortgage or other debts existing at the time of death, to have funds for the education of the children, to pay inheritance taxes without the heirs seeing the need to sell property or pay expenses of burial, if you do not have death and burial insurance.
 

Mataracy

VIP Contributor
To my own understanding, Life insurance is a contract in which policy holders pay regular premium in exchange for a lump sum
 

Mataracy

VIP Contributor
To my own understanding, Life insurance is a contract in which policy holders pay regular premium in exchange for a lump su
 

Moni2402

Active member
To my own understanding, Life insurance is a contract in which policy holders pay regular premium in exchange for a lump sum
Exactly, even so, there is a modality where the Unit Link, the Insured Pension Plans (PPA) and the Individual Systematic Savings Plans stand out.
To do this, it is important to take into account the legislation of each country.
 

Alexandoy

VIP Contributor
The actuarial computation of insurance is based on a formula that the amount of the policy would depend on the contribution of the insured. Usually you pay a monthly premium to the insurance company to build up your insurance policy. When you die tomorrow the beneficiary can claim the entire amount that is stated in the policy.
 

Mandy96

Valued Contributor
Firstly, there are more than one type of life insurance. I know of two which I can talk about. Term life insurance and the whole life kind. The very one you choose to purchase will determine the policy you want to subscribe to. This is kind of odd but it very true
 

Phabbyfundz

Active member
Life insurance as many other forms or insurance provided to us or made available to us by insurance companies and insurers serves as a form of indemnity against a future occurrence that may affect the life or even health of the policy holder that acquired the insurance policy. It provides so many benefits to the policy holder or insured.
 

MOSIUR

Active member
Yea! The main aim of life insurance is for serving that is very fine. Man is mortal. At any time, man must depart from this earth and so, he should do something which is really advantageous for his family. After the death of the main earner, a family becomes so helpless that cannot be expressed through the feelings of mind exactly. Here, insurance helps.
 

btaliat

VIP Contributor
There are more to life insurance than being a provision for the heir of the dead ones. It is believed that we have more type of life insurance policies but out of these popular types, two are very popular. While one of them wants to take care of the dead, other want to sustain the living
 

Nite

Valued Contributor
Using probability and law of large numbers, insurance companies determine the rate of premiums that it'll charge to their clients based on numerous risk factors. The premium rate must be sufficient for the insurance company to pay claims in future, its expenses, and also make good amount of profit, but not so much to turn away their clients.
 

Abigael

Valued Contributor
This thread has mentioned very good benefits of having a life insurance. Indeed you will not leave your family in agony when you die. A good life insurance will cover most of the things that you would have paid for when you were alive. That being said, it is really important got one to start contributing to life insurance earlier on.
 

Wisdom01

Valued Contributor
Although there are different type of life insurance policy available and it include the short term life insurance policy and the long term life insurance policy ,the long term own is just like the permanent life insurance policy where you the person gets the benefit attached whenever he or she dies
 

Chibson

VIP Contributor
Life insurance has a whole lot of benefits because it provide coverage and it will make the family of a deceased to enjoy his or her wealth. There are other a lot of benefit life insurance brings to the insurers. In some cases life insurance contains wills of the individual.
 

Wisdom01

Valued Contributor
Life insurance has a whole lot of benefits because it provide coverage and it will make the family of a deceased to enjoy his or her wealth. There are other a lot of benefit life insurance brings to the insurers. In some cases life insurance contains wills of the individual.
Exactly it provided coverage for the person even if the person is still alive as the person could claim his benefit at any point in time it irrespective of the type of life insurance policy the person have signed up for and it's best to use a better company for such policy coverage
 
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