All About Of Life Insurance | Life Insurance Policies

Hi Friends, In this article, you know what life insurance is all about. life insurance actually protects you and your family members against various events like critical illness.

Now, remember the times when your parents told you all about the various insurance plans they bought? or when they told you they bought you insurance, but you would have to continue financing it when you start working? All this, while you just went with the flow, having no idea what insurance is at all? Have you ever heard of this easy protect insurance plan?
No?
Ok,All About Of Life Insurance | Life Insurance Policies

Well today, I'm gonna give you guys a dummy's guide on how to understand life insurance!

#1 How To Understand Life Insurance?
Firstly, What is insurance? Simply put, it's actually just a form of financial coverage or protection against various events that might result in financial loss. But what we'll take a closer look at today is life insurance.

What is life insurance?

Now, depending on the policy that you have, life insurance actually protects you and your family members against various events like critical illness, disabilities or even death. At this point, if you're still wondering. "Hmm, do I need life insurance?" Well, it is something that definitely everyone should have because you can't predict all the unforeseen circumstances that could happen in the future. So, having the proper protection in place is necessary. So let's get started.

#2 Understanding The Different Terms
Firstly, 'Sum Assured'. The sum assured simply refers to the amount of benefits payable when a claim is made.

Premium Amount
Now, the premium amount is basically the amount that you pay for your policy and this really depends on what kind of policy you pick. It could be monthly, quarterly or annually.

Surrender Value
The surrender value is basically the cash amount you receive if you decide to terminate your policy early.

#3 Layers Of Insurance
There are three basic layers of insurance. That everyone should know about.

Hospitalization 
The first layer is, 'Hospitalization'. Now, hospitalization plans are one of the most common insurance plans that people purchase. The key to buying health insurance is to ensure sufficient coverage for hospitalization treatment and all medical expenses in the event that something unfortunate happens.

Protection 
The second layer is. 'Protection'. Now, protection plans are all about protecting yourself. And these can come in the form of term insurance or whole life insurance.

Did you know that term insurance is also sometimes referred to as 'Plain Vanilla'? And no, it has nothing to do with the pockets of the ice cream. A plain vanilla insurance policy provides protection for a fixed time interval. However, this does not accumulate in cash value. which means that if you prematurely end the policy or if the policy, ends you do not get back any of the premiums that you paid. Meanwhile. whole life insurance actually accumulates in cash value and it protects you for a whole lifetime. Usually until 99 years old.

Luckily, I behold life insurance when I was younger. And now, I can call it all the money.

Savings 
The last layer is, 'Savings'. And these are mainly for your own personal goals. First, there's endowment plans. Now, these are actually designed to meet different financial goals. They are usually suitable for the long term and also there will be a payout upon maturity. The main idea is that you can save now, to get pay-outs in the future. And there are also investment-linked plans.

Now, these are hybrid plans that combine the benefits of investment with the benefits of protection. The premium that you pay for the insurance will actually be used to invest as well.

Now, the investment period is flexible. However, with investments. There are high risk, but potentially high return. So, if you're around my age(24 years), You should be looking at the first two layers - hospitalization and protection. To ensure that you're adequately covered in the event that anything unfortunate happens.

I hope that you guys have a clearer picture of what is life insurance is all about. Now if you have any other tips and comments about life insurance.

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