Life insurance is a type of insurance that offers financial security to people and their families in case of unexpected death of the earner. The insured or the policy owner is required to make periodic fixed payments, to the insurance company to keep the policy in force. These payments are known as the insurance premium and are decided by the insurance company on the basis of several factors. Life insurance agents approach such potential customers who require life insurance for various purposes. To find out these potential life insurance customers, insurance agents rely on the leads generation process. These leads can be bought from companies who are solely dedicated to building up a database of prospective customers.
Life Insurance is provided by numerous insurance companies and advice as to the most suitable type of life insurance to meet your specific requirements can be obtained from financial advisers who work for insurance brokers, insurance companies, accountants, banks, building societies and some other sources.
Life insurance companies promote two types of life insurances. They are whole life insurance and term insurance. Whole life insurance is when the time covered is the entire life and the premium is calculated accordingly. In case of term insurance, the insurance policy is taken for a fixed time of five, ten or fifteen years. The policy is covered for only that definite time and the beneficiaries are given the sum assured if the insured dies during the term of the policy.
A large number of life insurance companies exist today to offer different life insurance policies to their clients. These life insurance companies try to keep their individuality by bifurcations and making different classifications on the policies.
Life insurance policies can be classified into two types:
1) Term life insurance policy-Term life insurance policy is helpful to cover a person’s short-term requirements. For example if the policyholder meets an accident, he can make an insurance claim. Term life insurance is a policy which covers potential need in the short run.
2) Permanent Life Insurance- This life insurance policy is for the entire life of a policyholder. The value increases throughout the life. Par and Non-Par terms are mostly used in the context of life insurance policy. Par offers dividend, while non par on the other hand does not offer any dividend.
Life insurance is something every one should look into. The family with young children or the single person who has a responsibility towards other people should think seriously of getting a policy.
Life insurance is very important for families and single people who are financially responsible for someone. They might be looking after aged parents or someone who is handicapped who would be destitute without their help.
Life insurance is much like taking a gamble. You never know if you will win or not. You might think that it is unnecessary to have this insurance as you cannot see anything going wrong in the future. You might argue that you are fit and well and intend bringing up your children yourself. There is always the unforeseen factor in life, something that is entirely out of our hands.
Life insurance company reviews are found on the net and various financial magazines. It is advisable to always take reviews with a pinch of salt as they could be biased. It is necessary on the part of the insurer to carry out a proper study and not take any of the reviews at face value.