Life Insurance is a self-defense that limits financial loss that would come after the untimely death of a policyholder. The already designated beneficiary inherits the proceeds and because of that, is protected from the financial shock of the death of the policyholder. The death benefit is paid-up by the life insurance company by factoring in the premium made by the late policyholder.
It’s important to point out that as we age, there is a variation in the life insurance we end up with. The possibility of your death while the policy is in effect, the kind of insurance you sign up for and the amount you purchase determine the life premium. Your current style and subsequent life style plus circumstance around your beneficiaries must be factored into your decision to purchase life insurance.
While the policyholder is alive, it’s advisable to revise the life insurance policy annually or when the policyholder encounters a major life occurrence, for example, purchasing a business or house, marriage, divorce, or the birth or adoption of a child.
It is of great significance to remark that not all life insurance offer lifetime policy, though others grant precise number of years. A portion of some life insurance build cash value but some others do not have such a component. A few life insurance policies offer benefits while the policyholder is still alive, but others do not. This is where other policies will merge different types of insurance.