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Life Insurance
Life Insurance is an agreement, between a person and an insurance
provider to provide monetary support to a person entitled by the insured to get
money, in case the person insured dies during the period the said agreement between
the two is in effect. The insured i.e., the person who had taken
this policy needs to pay the agreed amount of money on time to the insurance company
so that the agreement between the two parties remains in effect and so this money
is being called as premium or the insurance premium.
The person insured under this policy needs to pay this money during his lifetime.
Under this agreement, the insurance company (also called as insurer)
is bound to pay the agreed amount to the person being nominated by the insured
who is called as the beneficiary, in case the insured person
dies.
Many types of polices offering varied features favorable to different people are
provided by the Insurance Providers. The Insurance Companies
considers varied elements like financial status, income, etc. Insurance Company
is answerable to its clients and has to act according to the agreed terms under
the agreement signed between company and the insured. Insurance Company is also
bound to follow the insurance laws put up by the Government.
Insurance Companies provides its services to the customers through its agents
known as insurance agents. Insurance agents are there to facilitate
the help people in completion of procedures to buy a policy. Insurance agents
are answerable to the Insurance Company for all their acts. They perform according
to the companies guidelines.
Reasons why one should consider buying a Life Insurance policy:-
1. To Pay off the Debts
2. To replace the income in case of sudden death
3. To pay up the Expenses at the time of Funeral Ceremony
A person needs to spend a lot of time before buying an Insurance Policy to
assess the actual requirement such that the insured sum would be sufficient
to pay up all the expenditures arising in case of his demise.
Life insurance companies go through the applications for the
life insurance policies individually. The procedure involves
a questionnaire asking various common questions like age, gender, weight, health
history including any treatment or diagnosis one has gone through. The Insurance
Companies asks questions much more extensively as the age of the person willing
to buy the insurance policy increases. Insurance Company could also ask a person
willing to buy an insurance policy of big amount top undergo a medical examination.
A person should not buy the insurance policy from the company claiming to provide
the cover at cheapest rates he must also the features being offered by different
insurance providers.
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