Facts About Life Insurance Coverage
Insurance is an important part of individual’s life. Life assurance is one of the insurance coverage that an individual can get to ensure their loved ones do not suffer.
What is it?
Life insurance is also known as life assurance. The coverage is a contract between an insurer and the policyholder. It is the promise that the insurer makes to pay the beneficiary the death benefits upon the death of the policyholder. The policyholder has to pay premiums as a lump sum or regularly. The benefits can also include funeral expenses.
Who is it for?
Life assurance cover is meant for anyone who is above 18 years. It only takes a few minutes for an individual to apply for the insurance coverage. The premium that one pays depends on the person’s age and health. A young person will pay a reduced amount of premium compared to an older person. When filling the application form, an individual will be required to provide details such as the name, weight, health history, lifestyle habits, annual income and even family health history.
How it works
The policyholder agrees to pay the premium annually, monthly or semi-annually. The insurer, on the other hand, agrees to pay beneficiaries the death benefits once the policyholder dies. One has to give the names of the beneficiaries who will receive the benefit.
Different types of coverage in existence
There are a wide variety of life insurance plans. They include term insurance plans, pension plans, unit-linked insurance plans, participating insurance plans and non-participating insurance plans. The term insurance plans offer coverage for a given period. The participating cover have non-guaranteed and guaranteed benefits for the beneficiary; it also allows one to receive profits. In the non-participating insurance plan, the policyholder has the opportunity of growing their savings. The pension plans, on the other hand, offer one with regular income upon their retirement.
Life assurance has numerous benefits for the policyholder. The benefits are life cover, tax saving, long-term savings and life stage-specific planning. Life cover is the amount that the beneficiary is paid in case of an unfortunate event. The life cover takes care of the future of the policyholder’s loved ones. It also helps an individual to save and thus meet their needs.
Not only is one able to leave death benefit to their beneficiaries but it is also a way to save money. Therefore, anyone who is above the age of majority should consider getting the life assurance.