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What everyone should know about the benefits of Life InsuranceBY: Deena David | Category: Business and Finance | Post Date: 2009-10-27
Life insurance is a very important financial instrument that provides a lot of benefits to those who have subscribed to the insurance. There are many types of insurance policies available. Each country has different kinds depending on the need of the people in that country. There are insurance policies that are linked to the equity market and others that give back money at specific intervals. There are plain vanilla insurance policies like the term insurance where there is no other benefit except the life cover that is provided to the one who has taken the policy. The most important benefits of a life insurance that every individual needs to know are: 1. Death benefit: An individual may have been one of the most important earning members of a family. Life insurance helps to provide risk cover to the person. This means that when the person dies either a natural death or by death due to any other cause, within the term for which a premium has been paid, then the insurance company will pay the dependents nominated by the individual, a particular amount depending on the amount paid as premium by the individual whose life was insured. This life insurance makes sure that though the earning member of a family is dead, the family gets some monetary benefit. 2. Investment option: In a term insurance, there is no option for investment because the premium paid by the individual is only for the life cover and when the term is over, there is no return for the person whose life was insured. Only if death occurs will the money be paid. This may seem like a waste for those who are healthy. This was the reason for various insurance companies providing life insurance cover to add an investment option to the pure vanilla life insurance or the term insurance. 3. Types of insurance covers: a. Unit linked insurance: Here the individual benefits from the growth of an economy by getting return on the premium paid by them based on the growth of the equity market which is linked to the insurance. b. Money back policy: In this type of insurance policy, the individual who has insured benefits because of the return of a part of the premium paid by the person as a money back at specific periods of time. The investing individual can time it in such a way that he gets the returns at times when he needs it the most like for children's education or other such expenditures. Life insurance can be used as purely a life cover or it can be used as an investment option along with the life cover. Each of these has their own advantages and disadvantages. So it is better for a person to try and consult a financial consultant before they take a decision on the options they have available. These are the most important aspects of life insurance that every individual should know. This will enable them to select the right choice of investment and insurance plans that is suitable for them. Article Source: http://www.saching.com About Author / Additional Info: I have completed my Masters Degree in Paediatric Nursing. I am a writer with a passion for writing. I have been writing for some blogs and other sites. Comments are welcome at the following e mail address: deenaanddavid@gmail.com Additional Articles: * Gambling in Las Vegas * JOBLESS !! .. THEN READ IT * Harsha Moily the founder of MokshaYug Access in 2005 * Researching for article writing: Gathering ideas and writing a good article * There is a man behind every successful woman Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
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