Its Types and Benefit for Your Life
Life Insurance: Its Types and Benefit for Your Life What is ‘ LifeInsurance ?’ Do you need it? You don’t need it enough, but if your children, partner or other relatives depend on your income to cover the mortgage or other living expenses, then you should say Yes. It surely provides you and your family a financial protection in surviving dependents after the death of insured. How Life Insurance Works There are three main components of this kind of insurance policy. They are as follows: 1. Death Benefit Death benefit is the amount of money that the insurance company guarantees to beneficiaries identified in the policy upon the death of the insured. The insured will choose their desired death benefit amount based on estimated future needs of surviving heirs. The insurance company will determine whether there is an insurable interest and if the insured qualifies for the coverage based on the company’s underwriting requirements. 2. ...