Life Insurance – Why You Need it?

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<h1>Life Insurance – Why You Need it?</h1><strong> Author: <a href='http://www.articleseen.com/profile_Sam T..aspx'>Sam T.</a></strong><br /><p>The debate whether one needs a Life Insurance or not is ever on. A practical view of life would however let you see that almost everyone needs to be covered for life. While a basic life insurance ensures that your dependents are provided even when you aren’t physically present with them anymore, they even pay you back a bigger amount after a certain period of time. Technically, a life insurance is a contract wherein an insurer promises to pay a certain amount of money to your beneficiary on account of your death. To get this you need to pay a small amount to the insurer regularly. This amount is known as premium and is payable at certain periods as decided by the contract. Life insurance policies are taken by most people for two simple reasons – to insure financial stability to dependents or to get back a return on investment. Both the reasons are given equal weightage. In both the cases the insured is in a winning situation as in the event of death the people who are left without a support are given a financial back up while in case you survive the period, a good return on investment is what you get. A beneficiary can be anyone whom you nominate for the insured amount in case of the insured’s death. While beneficiaries can be more than one you can choose to decide how to divide the insured sum amongst them. Beneficiaries also need to be more than one. The primary beneficiary can be the one who gets the insured amount on your death. But in case the beneficiary passes away the amount passes on to the contingent beneficiary. Beneficiaries can be changed anytime by the insured. One of the most important benefits of life insurance to the beneficiary is that the amount that is received is tax free. This ensures that your family gets the entire amount and nothing is taken away from them. Different people have different needs and hence they have varied insurance needs too. It always depends on your liabilities and your affordability. Ideally it should be enough to accommodate all expenses that your family would need to ensure that the basic is provided to them. However this should not exceed your capacity to pay the premium. It is a little tricky to strike the right balance, but is possible with a little analysis and insight. The best thing to do is to get quotes from agents and see what kind of a premium is getting you how much coverage. Since different policies have different figures try and find out a policy that suits you the best. Also ensure that the Company that you plan to buy the policy from is financially stable. It is always good to know that the Insurer you plan to transfer your risks to have a good back up. A check of their claims history will also show how quick their claims response it. Ensure that you go for a accompany that is quick in settling claims. This ensures that your family isn’t harassed in the time of need.</p><strong>About the Author:</strong><br />Author: Sam T. Find out more information on <a rel="nofollow" href="http://www.futuregenerali.in/LifeInsurance/Index.aspx">life insurance in India</a> from one of the best <a rel="nofollow" href="http://www.futuregenerali.in">Insurance Companies</a> in India.<p> Article Source: <a href='http://www.articleseen.com/Article_Life-Insurance-–-Why-You-Need-it_81924.aspx'> http://www.articleseen.com/Article_Life Insurance – Why You Need it?_81924.aspx</a></p>

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Keywords : Life Insurance, India Insurance,

Category : Finance : Insurance