A person always needs a back-up plan to deal with any contingencies in his/her life. There may be a sudden death in the family or there might also be some medical emergency. A death of a working member of a family may result in the family being plunged into a world of plight. This is where a life insurance policy can prove to be extremely beneficial. Such a policy entails that that an insurance company will provide death benefits to the beneficiary of a policy in exchange for some payments that are to be made on a regular basis.
There are a number of life insurance policy plans that a person can choose from in accordance with his/her needs.
There are a number of factors that a person should consider before deciding which plan should work best for him/her.
• A person who does not want a complicated plan can opt for a simple plan. Such a plan normally comes with single premium options and guarantees a beneficiary that is assured a lump sum after the death of the policy holder. The assured sum is normally 15-20 times the present annual income of the policy holder.
• A person should insure himself/herself or any other member of his/her family who is suffering from any critical illness. Health insurance may not suffice in such cases as such a policy only pays for the hospitalization costs. However, a person suffering from a critical illness will generally require a lot of other funds as well. Thus, it is of vital importance for such a person to get a financial shield in the form of critical illness clause when he/she is applying for an insurance policy.
• A person can also avail accident cover with his/her life insurance policy. This will be hugely beneficial for a person as it can provide security in a number of uncertain situations like road accidents. This cover only costs a little extra and offers extra benefits to the family of the deceased in addition to the one-time payment.
• A life insurance will also enable your family to earn a monthly income even after your death.
• Different insurers even allow a person to choose how that person wants to receive the pay-out.
He/she can choose from multiple pay-out options to suit his/her different financial requirements.
• Do not always opt for the life insurance policy plan that requires the payment of the lowest premium. This may result in the loss of various benefits and also cause you to adopt a policy that does not meet your requirements.
• Choosing a proper insurance provider is also a key facet.
A life insurance policy lets a person provide financial security to his/her family and also enables the person to live a peaceful life.
There are a number of life insurance policy plans that a person can choose from in accordance with his/her needs.
There are a number of factors that a person should consider before deciding which plan should work best for him/her.
• A person who does not want a complicated plan can opt for a simple plan. Such a plan normally comes with single premium options and guarantees a beneficiary that is assured a lump sum after the death of the policy holder. The assured sum is normally 15-20 times the present annual income of the policy holder.
• A person should insure himself/herself or any other member of his/her family who is suffering from any critical illness. Health insurance may not suffice in such cases as such a policy only pays for the hospitalization costs. However, a person suffering from a critical illness will generally require a lot of other funds as well. Thus, it is of vital importance for such a person to get a financial shield in the form of critical illness clause when he/she is applying for an insurance policy.
• A person can also avail accident cover with his/her life insurance policy. This will be hugely beneficial for a person as it can provide security in a number of uncertain situations like road accidents. This cover only costs a little extra and offers extra benefits to the family of the deceased in addition to the one-time payment.
• A life insurance will also enable your family to earn a monthly income even after your death.
• Different insurers even allow a person to choose how that person wants to receive the pay-out.
He/she can choose from multiple pay-out options to suit his/her different financial requirements.
• Do not always opt for the life insurance policy plan that requires the payment of the lowest premium. This may result in the loss of various benefits and also cause you to adopt a policy that does not meet your requirements.
• Choosing a proper insurance provider is also a key facet.
A life insurance policy lets a person provide financial security to his/her family and also enables the person to live a peaceful life.
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