The only thing predictable in this world is the Unpredictable. We can never avoid what the future holds for us, least we can do is be prepared in the best possible manner to face it. Insurance just is one of the ways doing this. With the help of life insurance we can affirm that future is not bleak for our loved ones. Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured's death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.

 

As with most insurance polices, life assurance is a contract between the insurer and the policy owner (policyholder) in which a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people named in the policy.

Insured events that may be covered include:

death,

accidental death

Conditions not covered but which might be insured by forms of insurance or riders on life insurance policies:

Need for long term care.

Diagnosis of a terminal illness,

Diagnosis of a critical illness,

Disability due to ill health,

Permanent disability.

 

 

Life based contracts tend to fall into two major categories:

Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment.

Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums.

Many companies - private or government exist in the market today that offer various life insurance plans, amidst all these choosing the right policy, one that is most affordable and at the same time offers best of the benefits is an important decision and requires much research and precedence. Regardless of one?s economic strata in life, life insurance is an important ingredient of the financial plan and the key step towards protecting our loved ones future. Many life insurance products, however, are more affordable than one can think. Term life, for example, provides coverage for a specific time period, or term, and does not accrue any cash value, making a more affordable insurance. Determining which life insurance policy is right for you depends on your stage in life (age), your financial goals and your financial resources. For those just starting out in life, term life insurance may be the most affordable policy. A term life insurance policy provides protection for your loved ones for a certain length of time, called a term, and it doesn't accumulate any cash value, so premiums tend to be lower. For those with greater financial resources, a whole life or universal life insurance policy can be an affordable way to build wealth. A whole or universal life policy is permanent life insurance that accrues cash value and can be kept for retirement or passed on to your heirs.

More or less selecting the right life insurance plan for oneself is an important decision and must not be taken hastily. Supportive research and guidance from the experts are key factors in choosing the most affordable life insurance plan.