Global Life Insurance basic information
Life insurance is purchased by many people today to guard their families against being broke in case they pass away unexpectedly. A life insurance can also be bought as an investment for borrowing against in the future. Many life insurance policies are out in the market to suit different tastes of policy subscribers. Global Life website will precisely help you compare quotes from top providers.
Life insurance originated from the ancient Rome when burial clubs were introduced. To become a member one was supposed to contribute money which was kept and was used to fund the burial of club members who died. It later emerged in America and Europe to insure against the loss of ships in high seas. Life insurance was later introduced in the 1700. The idea behind life insurance is to spread the risks involved to all members.
- Types of life insurance
Whole life and term life are the two types of insurance available today in the market. For a term life policy a member pays a specific amount of money at the end of every month. A term life policy is only paid out to a member who dies while the policy is active. Whole life insurance policies are more expensive and allow one to save some money into the policy more so the death benefits paid out. Other offer flexibility on the component invested are universal life insurance and variable life insurance.
- Buying Insurance
Life insurance is offered as a benefit to workers in the companies that they work for. Individuals can also buy their own life policies from companies like, State Farm Life Insurance, MetLife and Prudential that offer pocket friendly policies.
The cost of insurance policies and their plans vary in a wide range. Underwriting which is a calculation full of complexity is used to calculate the life expectancy of policy holders using mathematical formulas is used by insurance companies to determine the cost. Death rate among specific age groups is determined using mortality tables. Health history of people seeking policy cover is also used to determine how much a policy will cost an individual. Younger non smokers are more likely to get a cheaper policy than older people who smoke or people coming from a family with known history disease.
When going out to purchase an insurance one should consider the reasons why they need it, the amount of policy needed their objectives and goals when choosing the policy to cover them. One should know if the policy still covers in the event of life changing events like divorce, marriage, bearing kids or buying property.
Life insurance is a contract entered by the insurer and the insurance policy holder to insure a policy holder an agreed amount of money to be paid out to the beneficiaries or a beneficiary when the policy holder dies. The insurer could also pay the policy holder in when a chronic illness strikes. The insurer is paid a premium by the policy holder to cater for the insurance policy. This amount of money can either be paid in lump sum or in installments. Funeral expenses and other miscellaneous expenses may also be included in the premium amount.
People refuse to take insurance policies because of the following reasons;
Many people have a negative attribute towards death and hence associate insurance with death or making a wish for death.
Most people take a policy to be not something tangible to them and they don’t see the reason for holding one.
People like to invest their money in a place where they can see tangible results that is always bringing n the extra needed cash. They want to see direct returns hence they invest in bonds, mutual bonds and fixed deposit accounts.
Some people relate life insurance as a way to value a person’s life and they may take it as an offence when they are asked to take a policy since they deem their life to be priceless.
People do not believe that they can die prematurely despite the fact that it is an occurrence in everyday life through accidents and sudden illness.
An insurance policy offers many more good benefits to a policy holder and it is always beneficial.Below are some of the benefits of of holding a life policy.
The best reason is that the policy holder is always at peace by knowing that when he dies his family will be well catered for by the life policy hence those he leaves behind will not suffer from financial crisis.
In the event that the policy holder is the bread winner the family will not have to go through emotional and financial pains struggle as they struggle to make ends meet. There is a policy that guarantees that the family gets an equivalent of the deceased salary for the family to cater for its bills just like it was always done before e by the deceased.
The family has enough money from the insurance policy to cater for expenses like medical treatment, food, children education trust, mortgage, clothing’s and monthly stipends.
A policy holder can use the life insurance income to settle any estate he owns. Though settlement is made after death a person is given an opportunity to make plans for his estate while he is alive.
A life policy holder always gets a tax relief when filling for tax returns.
Inexperienced and incompetent insurance consultants and agents end up giving poor guidance to many people and in the end these clients end up making poor plans on their insurance package. All this has changed since sites like this came into existence. From here you can get well trained insurance agent who will take you don all the processes and advise you on the best policy package that suits your pocket best and what is best for you and our loved ones.
To register with us, fill out the form provided and submit to us. Our consultants will contact you later with further assistance.