Life insurance

Life insurance is meant to leave behind your next of kin as well as beneficiaries in a position that will not stress them later on. This is because the premiums contributed will be handed over to them as you had indicated in your insurance contract. Even tough life is quite hard to measure its worth, its wise to have a life insurance policy. This is because of the stress you may leave behind and also medical expenses attached when it comes to treatments.

There are several levels of life insurance policies and they may include:

1. Term insurance:

This is A policy whereby one takes A life insurance policy for A certain period mostly as an estimate of The time The will die. The insurance policy is meant to benefit the beneficiaries of The insured should he pass on in between The time indicated in The policy. If by any chance The insured doesn’t die, The policy doesn’t become effected and hence no reimbursement if paid back. This is because The reason for insurance was death and The risk hasn’t occurred.

2. Group life insurance policy:

Organizations undertake this type of policy for The sake of their employees. The policy covers any risks attached to them at their place of work. In industry, for example, The employee may get injured while at work and as A duty of an employer to his employee, this policy will cater to all expenses attached. Organizations should take this type of cover as it makes them look responsible for their employees.

3. Whole life assurance:

Unlike The term policy, this cover now caters for The whole period till death. Once purchased, The policy becomes affected after The death of The insured be it any age. This policy hence means that The insured will be paying premiums till death. Even though it may look relatively expensive as compared to The term policy, The benefit is higher as The reimbursement will match the premiums paid. One, however, may also opt to pay the premiums till retirement but still benefit are realized only when death occurs.(

4. Endowment assurance:

This policy is quite similar to The term policy. You are to pay A premium for A certain period as indicated in the contract of insurance as A cover of that time. However, The difference is that unlike The term policy where you do not get compensated when death occurs, this policy will pay. This is because there is an exclusion clause requiring the insurance company to pay back even if death doesn’t occur in The period insured. (

5. Decreasing term policy:

leaving behind debt is not The best idea as you pass on. When it comes to this sort of policy, it ensures that debts are paid by it when you die. This will enable The deceased party’s family to cater for debts owned and hence will not be left at any financial stress after their loved one passing on. It’s quite common in mortgage institutions so that The property bought will have funds to pay for it instead of stripping the beneficiaries off.