Invest in Your Family’s Future With Life Insurance

Insurance is the process of indemnifying an individual or a group against loss. It must be pointed out at the outset that insurance cannot be used for betterment. That is, it is not a means of profit but a means to reduce the amount of loss to a minimum. In no way can an insurance company reinstate a policy holder to a position where his or her position would be better than they were before the incident leading to the claim. In all cases the policy holder will have to bear some extent of the loss – in most cases it will be minimal.Insurance is the process of paying a monthly fee – called a premium – to the insurance company as a safeguard against loss amounting to a certain sum of money. The monthly fee, or premium, is determined by the maximum amount the insured can be indemnified with. Should the insured land in a situation where he or she will suffer financial damages the insurance company will payout an amount to the insured or other agencies to reduce the financial loss of the insured.There are many types of insurance policies and companies. There are government insurance agencies as well as private insurance agencies. These companies deal in health, insurance, life insurance, auto insurance, home insurance, and what not. In fact, anything under the sun can be insured. This is called general insurance.We will discuss life insurance here with a view to using life insurance as an investment option. Life insurance is nothing but insuring ones life against a certain sum of money. Now, this does not mean that once insured one cannot die. It just means that your dear ones, called beneficiaries, will get a certain sum in case of your death.The sum that the beneficiaries will receive on the death of the insured will depend on the amount the insured had agreed to in the policy and also depends on the timely payment of premiums by the insured. However, in case the insured services the insurance policy term, which is normally 15 to 20 years, he or she gets the total sum insured with interest at the end of the policy term.This is where life insurance can be used as an investment. The insured will get back certain sums of cash out of the total sum insured at intervals of five or six years or as the policy may determine should the insured survive the period. If the policy is for 20 years the insured will get 4 installments of the sum assured. Then at the end of the policy he or she will get a lump sum of cash. However, in the event of the death of the insured the beneficiaries will get the total sum insured as well. This is where Life insurance can work out better than any investment plan.

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