When you buy life insurance, you enter into a contract with an insurance company that promises to provide your beneficiaries with a certain amount of money upon your death. In return, you make periodic payments, called premiums. The premium amount is based on factors such as your age, gender, medical history, and the dollar amount of life insurance you purchase.
In the event of your passing, life insurance provides money directly to your beneficiaries. They can use the money for:(State Life Insurance Policy Lahore)
Making up for your lost income
Funding a child’s education
Paying off household debt
Paying for your funeral and other related expenses
Certain types of life insurance may provide benefits for you and your family while you’re still living. For example, permanent life insurance offers a cash value component, which can be put to good use during your lifetime.
Whole Life Assurance
When the sum assured is to be paid on the happening of the certain event, i.e. death of the insured, and then it is called whole life assurance.(Whole Life Bima Policy Lahore)
Term Life Assurance
On the maturity of the life insurance policy, the amount is paid in one shot to the policyholder.
When on the maturity of the policy the sum assured is paid in installment, usually monthly, it is called an annuity.
How Much Life Insurance Do I Need?
Your goal should be to develop a life insurance plan (through one or more policies) that, following your death, compensates for the loss of your economic contribution. Here are two ways to determine how much life insurance you may need.(Endowment Insurance Lahore)
Why Life Insurance is necessary?
There is nothing like imaging yourself on a death bed and helpless. The worst scenario you can imagine after this is “Your dependents being left with nothing to survive for the rest of their lives” To make sure this doesn’t happen, Life insurance is important for every individual.
This decision of purchasing an insurance policy is going to come handy once you’ll be old or in-case of retirement, it is going to pay-off the huge numbers that you’ll be unable to pay from current cash-flow. Life-saving and the death benefit is one aspect of insurance policy however you’re also going to get money once the tenure of the policy is at its completion.(State Life Education Plan Lahore)
1. Life Insurance for Children
In the case of Hereditary Risk, Parents can buy a Life insurance policy for their child. In the thought of expecting a long life for their child, parents will go to every limit to make their future secure. The best way is to buy an insurance policy under their name so they can use it when they will need it for their families.
2. Life Insurance for Parents
Life insurance can also be important in terms of investment. You can do this by getting a life insurance policy for your parents. Suppose that the premium of this life insurance policy is going out from your pocket and by making yourself the beneficiary of this policy, you’re going to save is the amount for the longer period of time. This option is considerable when your parents are young in age.
3.Life Insurance for Business Persons
Life insurance policy is also important for business persons. You’re running a business of your own or in partnership and most of the people relies on you. It’s necessary for you to buy a personal Life Insurance policy for the purpose of your business obligation.(Supplemental Insurance Covers Lahore)
4.Starting off with a “Family”
Life Insurance policy can be purchased when you’ve decided to start off a family. In this time, the rates would be comparatively cheaper than the time you get older. Better consider buying it now!!!
One of the best offers the Life insurance policy comes up with is Marriage plan. In Pakistan, one of the most important things to worry about is ” how we are going to bear the expenses for our child’s marriage” this scenario is mostly applicable to girls. Buying a marriage plan under life insurance is the best thing you can gift to your child and peace of mind for yourself as well.
6. Child’s Education
Education plan under the life insurance policy is also one of the reasons why you should start making up your mind towards this financial product. This plan is going to take care of the finances of your child’s education on which the whole development of your child’s career and life is dependent upon. In Pakistan people usually don’t plan upon the finances that are going to come in their ways as the child grows up. Today he is in school and in the next 10 years, he is in high school and just like that he is standing in front of you and wants to go for a certification which is not pocket-friendly. This plan is going to help you then.(Child Education and Marriage Plan Lahore)