January 16, 2019


LIFE INSURANCE | ALL ABOUT LIFE INSURANCE YOU DON'T KNOW (UPDATED 2019)INTRODUCTION: Life insurance has to do with a person’s life been at risk of unforeseen or unexpected happening upon taking a life insurance you are equally entering a contract between the insurer while you become the policy holder. The insurer promises payment of a death benefit to named beneficiaries (take note: there must be a named beneficiary) upon the death of the insured. In a case of death, the insurance company looks into the premium of the insured and pays the death benefit according to the premium.

Life insurance is a way of assisting a family when the policy holder dies (usually the head of the home or the person who brings in the bucks).

It is intended to help you loves ones when they can’t rely on your salary or home any more. The money or payout realized can be used to clear debts, payoff the mortgage or just to cover your daily expenses. Life insurance policy can/may also cover the burial or funeral expenses if you haven’t set aside anything for it.

Life insurance policy are for mostly family members or a person who has a partner but if you are single with no one relying on you or your income then life insurance policy may not be necessary but in the case of having or knowing some who you might want to insure your income on due to his/her financial disabilities, then you might want to choose a life insurance as the best option.

life insurance policies are legal contracts and the terms of the contract describe the limitations of the insurance events. Common examples of exclusion in the life insurance policy may be including:

·        claims relating to suicide

·        fraud

·        war

·        riot

·        and civil commotion

    Life based contracts have two major categories:

· Protection policies : this is policy provides a benefit typically a one – time or huge payment in the event of a specified occurrence

· Investment policy: this policy objective is to facilitate the concurrent growth of capital by regular or single premiums common forms as in the united states are whole life, universal and valuable life policies

Life insurance policy is designed for applicant to look into their financial situation and determine the standard of living needed for heir surviving dependent before purchasing a life insurance policy this is where insurance agents or financial adviser come in to address issues relating to this in order to meet the actual needs. After the life – based categories, which have been briefly explained above; there are three major components of a life insurance policy which will be explained right here for better understanding and they are:

·        Cash value of permanent or universal life insurance

·        Premium

·        Death benefit

1. Cash value of permanent or universal life insurance comprises of a savings account and cash accumulated on a tax. Deferred basis.

The savings account is used by the policy holder during the life of the insured while cash accumulated on a tax deferred basis is future tax payment by the policy holder to make appropriate into the insured (payments to the insured)

2. Premium: in this case, the insurer will determined the cost of insurance or the amount needed to cover mortality costs, policy maintenance fees and others like administrative fees. There are certain factors that can influence or change the premium which are:

·        the insured age

·        medical history

·        occupational hazards

·        personal risk property

The insurer will remain obligated to pay the death benefit if the premiums are submitted as required

3. Death Benefit: this is the actual amount of money the insurance company assures the beneficiaries (payment to the beneficiaries) identified in the policy upon the death of the insured. The insured will choose their desired death benefit amount based on estimated future needs of serving heirs. The insurance company will determine whether there is an insurable interest and if the insured qualities for the coverage based on the company underwriting requirements.

Note: the most common type of life insurance is the term insurance (term policies) which pays only if you die within the duration stated for examples if you take out a policy for the next 30 years, then your family can claim if you die within this 30 years period.

Another type of insurance that is most common is the Whole life insurance; your family can claim the payout no matter when you die. it doesn’t  have an age period. it is unrestricted by a policy, term but this policy is normally more expensive or the most expensive that the term insurance as the insurer knows that definitely there must be a payout

I will be dropping here and right now some hint that will answer few of your questions in a question and simple answer form but if you need details on these questions then you can contact us. Here are they:


Do you have the same payout no matter the time of death?


it depends on the life insurance policy you want for, if you actually bought a level term insurance then the payout will be same even if you die on the first year or on the last (30th ) year.


Do we have a policy that payouts anytime I die?


The answer to this is “yes” we call this the whole life insurance. Your family or partner can claim for your policy no matter when you die. That is the term policy (your death must be within anytime your death occurred) but one thing about the whole – life insurance is that it is pretty expensive than the term insurance.


Can I take out a life insurance if am not feeling well or sick of disease?


Most insurance company do not really accept this offer because you might actually die of that sickness or disease and they run at loss. if you die of that particular illness than there will be no payout. But in your condition but I bet you it’s gonna be a very huge amount on premiums because of the high risk of claim


Do other people take life insurance?


Yes, but life insurance premium rises with age and older people pay more for lover. And most especially if there are no medical or heath questions

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