Understand The Basics Of Life Insurance

You may be a spouse, you may be a parent, or you may be a child for your old aged parents, in all the cases one of the most important things that you need to do is to ensure that there is financial welfare to your dependents in the event of your death. This is possible when you get the life insurance for your life. It is no doubt the best way to be assured that your dependents are taken care of when you die. No one expects the death but that shouldn’t stop you from getting insured.

What is Life Insurance?

Life insurance is a policy that you or any of your family members can enter with the help of your insurance company. The insurance company promises you a certain amount to the beneficiary/beneficiaries in the event of death of the insurer. The beneficiary is called the nominee which will be usually be one’s spouse. You can also choose your children or parents based on what suits you. In order to company to provide your beneficiary the amount, you would be required to pay certain amount every month or yearly. This is usually called as premium. The premium depends on various factors such as your age, gender, your health condition, your term period etc. There are certain types of insurance policies that also provide the benefits for you and also for your family when you are still alive. These policies will accrue a cash value on a tax-deferred basis and are very useful for future needs such as your retirement or may be your child’s higher education.

Do I Need Life Insurance?

There is no second thought on this question. The answer is always a big yes. Even though we have come up with certain points or conditions which should tell you whether an insurance is needed?

1) Are you are married and living with your partner?

2) Do you have children who are completely dependent on you?

3) Do you have a parent who is aging, or who is dependent on you?

4) Are your retirement plan or pension and also savings aren’t quite enough so as to insure you and your loved one’s future?

If your answer to any of the above questions is a yes, you would need insurance. 99 out of 100 will have a yes to at least one of the above. This is why we told you in the beginning that there is no second thought on it.