Are you about to buy life insurance policy, trying to know how life insurance works is the first step you should take. For that reason this article focuses on What is life insurance and how does it work. Here I will be explaining in details all I know and what you should know about life insurance.
Life insurance is a policy between you and life insurance company. You will agree to make payment on monthly, weekly or 2 times in a year basis. This month will be paid to your beneficiary when you are dead.
Life insurance company in turn make more money by investing your own money in business and make profits. When you stop paying money as agreed with the insurance company then the company can take the money and have it all to themselves.
You life insurance policy will be paid to your beneficiaries after your death, it is called death benefit. This money can be used for your funeral or anything else as they will decide. It is not necessary to give you life insurance policy to your beneficiaries but you can tell them the company that they will claim it from. Once they submit life insurance claim they will receive the death benefit within two to fourth days.
What is life insurance and how does it work
Below is what is considered before choosing life insurance policy.
- Nicotine use
- Medical history
- Family health history, such as heart disease or cancer among immediate family members
- Dangerous hobbies, such as scuba diving
- Planned travel to risky parts of the world
- Other risk factors, such as your driving record
Life insurance is really important and will be of great use to your beneficiaries (family or friends). You can use to give them a new beginning.
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