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Life insurance ABC you must know


Life insurance are develop with an assumption that one day you will die which is fact. We all will day one day. The lack of foreseeing how it will be puts as at risk. Because passing away does not give warning or day notice it better to cushion yourself and the people you hold dear for the uncertainty that may arise. Life insurance is developed with a mind set of true facts that will occur when one dies. A direct cut on source of income is one of them. Those who will be left behind will be left to fight for themselves which in turn leads to desperation and exposure to financial crisis that come as a result of cut income.
The whole life insurance policy is designed to see the persons though the aftermath that may arise when you pass away. It has no ending date as long us the insured is a live. One pay the premium rates and has the right to the cash value of the insurance policy which one can use for mortgage, and other kind of loans. It’s a double edge sworn that cushion one from direct dead risk but also provided an option for using the policy for investment as he/she wishes.
Universal life insurance provides a cover through a flexibility which is subjected to change within the timing monthly payment of premium and death payment benefits. One can build cash value or pay lower premium just to keep a guaranteed coverage incase the risk occurs. The cover last for the lifetime of the insured. Cash accumulation and affordable cover is guaranteed. In some insurance companies one is accord an option of lifetime guarantee monthly income if to choose.
Some of the things that determined the cash value is the interest rates which are determined by the market forces of the corresponding investment in the market. Changing of the policy premium and death benefit will automatically affect the policy progress and guarantees which may be subjected to higher premium rates to keep the policy alive.
Reduction of the premium rates will directly affect the cash value, some of the benefits may be lost and the dead benefit will change as well. Some high risk life styles like ridding and working in risky areas like war zone will increase the premium because of the high factor or risk exposure. One can also cash out the policy to receive the lump sum which can be used for other investment needs instead of a loan. It is always good to be a head by having any of the insurance policies.
 
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