LIFE INSURANCE

June 17, 2017

   INSURANCE

Life Insurance

Life Insurance

For many Life Insurance policy holders, the first experience with life insurance is when a friend or a relative gets employed by an insurance company as a life insurance agent. After a little training they come out to the field to find prospective clients to sell insurance policies.

My brother who was a teacher by profession got employed as a  part time worker  at an insurance company. His first client was me. I could not refuse even though I did not know what it was all about. And he did not know either. All we did was filling out forms and making an initial payment or premium. This  was a 20 year policy. All I did know was, in the event of my death a sum of money is paid to my relatives. If nothing happened to me for 20 years I will receive the money I have paid to the insurance company. I will also receive a small interest which  is called a life insurance benefit.

In the olden days people really did not need Life insurance.   If any person had a misadventure all family members looked after everything. But today things have changed as everyone is busy and have no time to look after one another.My family did not need this money as they could manage on their own without my insurance money. But at the end of the period when the policy matured I received what I had paid to the insurance company with a little interest which was useful to me at that time.

Life Insurance Companies

This is how many people get life insurance.  Life insurance is something people really need at some stage in their life. But they must have life insurance when the need arises.  Unfortunately one cannot buy insurance after the need has come. Insurance should be purchased before the loss or a need occurs. Life insurance is a agreement  between the person who has taken an insurance policy, and the life insurance company,. The company  promises to pay a  dependent nominated by the insurance policy holder, a sum of money ,namely the benefits upon the death of the insured person. According to the agreement, other events such as permanent disability or serious illness known as life insurance health benefit   may also allow payment. Other expenses such as funeral expenses are also sometimes included in the benefits. The policy holder typically pays a premium, monthly, quarterly, half yearly or yearly.

Insurance

INSURANCE

INSURANCE

No one should buy life insurance because your friend or relation has forced you to buy or just to satisfy him. You must buy insurance from a reputed insurance company and that too from a qualified insurance professional. He will ask the correct questions from you and advise you on the best possible insurance policy suitable to you taking into consideration your income, expenses, health conditions and the premium convenient to you. Even if the need for insurance is high one must take an insurance policy based on the premium he can pay without any problem.

Reasons to purchase Life Insurance

There are many reasons why anyone should purchase life insurance. As people grow older, get employed, marry and have children, life insurance is a very important to the welfare of the family and gives a peace of mind, knowing that money will be available to protect the family financially. In the event of death of the wage earner there will be no money coming to the household for expenses for food, schooling and education. Therefore the money paid from an insurance policy as life insurance income can look after the family needs even if the father is not living.

If the family had mortgages and loans money is needed to settle these debts. And then  keep on living in same house without selling it. If the money received from insurance can be invested to receive a monthly income, so that family can continue to live as before without being a burden on others.

In the event of loss of life funeral and cost of burial will be very expensive. If there is life insurance the wife, parents and children will not have to suffer financially in addition to suffering emotionally.

How Much Insurance coverage should I have?

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How much insurance coverage should a person need?

The amount known as the death benefit, the amount is  paid to the beneficiary should be high enough replace the after tax income you would earned, had you lived a full life. But of course you must be able afford the premium. If you find it difficult the next best thing is to start with an affordable premium.  This means that the insurance replaces the income you didn’t have the chance to earn by living and working until retirement due to early death.

The proper amount of Insurance allows your family to continue their lifestyle even though your income is not available. Whether we like it or not we will die day, and no one knows when. It could be today, tomorrow or sixty years from now. But it will happen eventually. Life insurance protects your heirs from uncertainties of life and helps them through difficult times of loss.

Auto Insurance

In the modern times life insurance has developed many features and benefits. In the early days life insurance had only the death benefit.

Car insurance is another benefit in insurance. For a small fee the car owner can claim the damages in the event of a motor accident. According to government it is compulsory to obtain auto insurance.

After studying Life Insurance and getting qualified and obtaining a government license, I too became an Insurance and Financial services consultant.  I joined  a world reputed insurance company in Sri Lanka. During my previous employments I have come to associate many professionals such as doctors, lawyers, engineers, businessman, government officials and many educated people. So it was very easy to carry out my work as it was easy to explain the benefits of insurance. In my career at the beginning I found reluctance from a certain people from a different religious faith saying that they do not want anything free, other than god. But of course they insure their houses and motor cars, jewelry against fire and burglary and receive insurance payments. But after some years things have changed.

The writer is a qualified and registered Insurance adviser.

Tags: insurance, life Insurance , car insurance, auto insurance, American family insurance





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