We will read about life insurance in this post. Life insurance is very important for each person. This insurance provide benefit or income to an insured person’s family. It help by cash payment or an annuity. Now, one question create about this topic.
What is life insurance? This question is very important for us. Now, we define this term. Life insurance is a contract between an insurer and insurance company. In other words we say that it is a protection against financial loss that would result from the premature death of an insured person. Company pay after the death of the insurer.
Insurance company is to provide a measure of financial security for your family after you die. So, you consider your financial situation before purchasing a life insurance policy. You thinks some points such as Would your family have to relocate? Who will be pay for medical bills and martgage? and many more.
Second question create now about this type of insurance that
How Life Insurance Works:
This question is most important for us or every insurer and every insurer person think about it. Therefore, we can help you. Life insurance have three main components are premium payment, death benefit and cash value account. Now, we define and tells you about these three terms.
- Death Benefit: The death benefit is the amount of money which pay by insurance company to insured person after his death. In other words we can say that it is an insurable interest which provide by company.
- Premium Payment: This point is also important for insured person. Now, we define this term that the insurer determines the amount of premium it needs to cover mortality costs. Factor such as insured’s age, personal and family medical history, and lifestyle are the main risk determinants. For term policies, Premium payment includes the cost of insurance and for permanent policies, it includes the cost of insurance plus an amount that is deposited to a cash value account.
- Cash Value: A cash value component have two purposes which includes in Permanent life insurance. It is a savings account and it allows the insured to swell capital that can become a living benefit. The capital accumulates can be used for any purpose while the insured is alive and it can be also used by the insurer to mitigate its risk.
Life Insurance is your financial safety net:
Progressive Advantage life insurance provide longer-lasting financial security for your family and your family can use it to help pay for burial expenses.
Life Insurance for a Family of One:
Many people who have no children and sufficient cash to cover their final expenses. But one question is create now that how many of those people do you really know? This question is most important for us. Who have no children then how a life insurance purchase can be a smart financial move for him. Now, three most important questions creates, please think about these questions:
- Do you provide financial support for aging parents or siblings?
- Do you have substantial debt you wouldn’t want to pass on to surviving family members if you were to die prematurely?
- Did family members pay for your education?