Life insurance basics
Literally, life insurance is nothing but a type of contract between the insured and the insurance company. The insured picks up a suitable plan, and pays the premiums in regular installments. For the premiums paid, the insurance company would give a lump sum amount of money, known as the benefit, to the insured’s dependents on the occasion of unforeseen death of the policy holder. Before choosing the type of life insurance, the owner needs to set their goals and needs. Term life insurance would provide protection only for a set time period, whereas other life insurances would provide lifetime coverage. All the benefits from the life insurance are tax free.
Literally, life insurance is nothing but a type of contract between the insured and the insurance company. The insured picks up a suitable plan, and pays the premiums in regular installments. For the premiums paid, the insurance company would give a lump sum amount of money, known as the benefit, to the insured’s dependents on the occasion of unforeseen death of the policy holder. Before choosing the type of life insurance, the owner needs to set their goals and needs. Term life insurance would provide protection only for a set time period, whereas other life insurances would provide lifetime coverage. All the benefits from the life insurance are tax free.
Types of life insurance:
There are a lot of life insurance policy types that an individual can choose before investing on one. First and foremost is the term life insurance. This type of insurance is designed in such a way to provide financial protection for a specified period of time, like around 10 or 30 years. After that period of time, some policies might offer coverage for an extended period of time for a higher premium rate. It is a less costly as compared to other life insurance policies. The next type of insurance is universal life insurance that is designed to provide lifetime coverage. Universal life insurance policies are flexible and allow one to raise or lower their premium as and when it is needed. This type of insurance usually has higher premiums than the term. The last type is the whole life insurance which is a type of permanent life insurance that is designed to provide lifetime coverage. When one decides to buy life insurance, helps to save a good amount of tax accruing benefits.
Buy life insurance online:
Rather than going for the traditional methods of buying, purchasing insurance online has a lot of benefits. There are no intermediates involved in the online insurance purchase, and the customers can buy insurance directly from the companies. Since there is a lack of brokers in between the purchase, the customers can buy life insurance online without additional commission charges and reduction of operational costs etc. This results in reduced costs to the company, who pass on the benefits to their customers. When one buys life insurance online, there are a lower add-on costs that are added on to the purchase.
The buyer is the king when it comes to purchasing life insurance online. The buyers can access all the information of the plan, its features, terms, rules and regulations, and the like on the website of the insurance company. Buyers can review and compare the options that are available online which will help them to choose a best policy. It is all about making a future secure, so one needs to make sure that they would make the best decision while choosing insurance.
