LifeInsurance:
Life insurance is a coverage plan against financial losses that result from the death of an insured person – or to put it bluntly - a financial security against death. Primarily, people buy life insurance to ensure reasonable finances for their family against the income that would be lost if they passed away.
Life insurance is an important form of insurance, especially for people with dependents like spouse, children and parents. It is beneficial in numerous situations and provides necessary coverage to a vast majority of people.
Proceeds towards Life insurance are tax-free and therefore provides you an added advantage for better and efficiently planning of your financial resources.
There are different types of life insurances policies that offer wide variety of options to match different requirements of the public.
Note that life insurance policies usually contain clauses that define restrictions on the circumstances of death of an insured person. Situations like suicide of the insured or his/her murder from the beneficiary would result in no financial benefits for anyone – except, of course for the insurance company.
There are several different types of life insurance policies in t he market that you can choose from in accordance with your specific requirements and needs. Life insurance policies can generally be classified into two major categories namely:
These main categories are further divided into sub-categories Whole life insurance, Universal insurance and Variable insurance which all belong to the permanent life insurance group. |
