Life Insurance- Types, Importance

Life insurance is a form of insurance coverage that provides financial protection against the risk of death. It is typically used to provide for dependents and others who may be financially dependent on the policyholder, as well as to pay off any outstanding debts and obligations such as mortgages or car loans in the event of the policyholder’s death.
Life insurance is an insurance policy that pays out a sum of money upon the death of the insured individual. A life insurance policy can be purchased by an individual, or on behalf of an individual, to provide for dependents in the event of their death. It can also serve as a method for debt consolidation or estate planning purposes.

Why Life Insurance is Important – 
The purpose of life insurance plans is to make sure that your family doesn’t face financial hardship after your death.
If you are the breadwinner of your family, this comes as no news. But what if you are not? What if you are a stay-at-home parent or a college student? It is still very important that you have an insurance plan in place.
It is true that most people don’t think they need life insurance. They think the only people who buy it are those who are old and sick. However, even young people can benefit from life insurance.
Today life insurance is considered a vital part of anyone’s financial planning.

Benefits of Life Insurance
Life insurance is something that most people know they need but can’t be bothered with. We’ve put together this guide to show you why life insurance is important, how it works and which type is best for you.
Life insurance protects your family’s future in the event of your death. It pays out a lump sum, which can help to cover things like mortgages, funeral costs, and outstanding loans. This money can also help to replace the income that your family would receive if you were still around – this could be your salary or the money you would make through investments.
The fact is, insurance is not something people like to talk about. e. It has always been a bit of an awkward topic, but everyone needs it. 
But many people don’t purchase life insurance policies because they view them as boring and unimportant. They think it won’t affect them or that there’s no point in having it when they’re still young and healthy.
Types of Life Insurance
Life insurance is a contract between two parties. In exchange for a premium, the insurer agrees to pay a specified sum to the beneficiary if the policyholder dies during the term of the contract.
● Life insurance, which pays a lump sum of Minimum Sum Assured Plus a Bonus amount on death/End of Term.
● Term insurance, which pays a lump sum at the death of the person
● Whole life insurance, which covers death and also gives a return at the end of the term.

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