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Reason for purchasing life insurance policy
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Posted On :
Nov-10-2011
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Article Word Count :
425
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A question always raises in the mind of the person that how would his family financially manage their expenses if he dies some day
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A question always raises in the mind of the person that how would his family financially manage their expenses if he dies some day. How would they be able to afford the food, clothes, credit cards, and petrol and bill payments? Would they will be in debts due to inefficiency in paying the usual monthly expenses. So a person always wants to secure his family future so that they can overcome the situation that will arise after the death of the person. Life assurance comes as a great solution to this problem.
Life Assurance policy provides a person with a self peace of mind and led him a tension free life as you are able to secure the future of your loved ones and your family members the unexpected occasion of your death. No one want ever to die but the right steps to secure the family future is very important. It is beneficial to understand how this kind of assurance really works and help them to best choose the policy that suits their need.
Definition of Life Assurance policy: -
Life Assurance policy is a source of income replacement for the person in case of death; it provides the beneficiary of the assured person with the lump sum amount of money to provide financial assistance after the death of the person who is assured. Life Assurance provides a financial aid and emotional support at the time of financial hardship emotional trauma one suffers after the death of the person.
Types of life assurance policy:-
Life assurance is available in the following different forms:
1. Term Assurance: - it is designed to provide security to the person for the particular period of time, to pay out the final benefits to the family only if the assured person die within the policy's term. Term assurance is mostly provided for 5-30 years of time period.
2. Level Term Assurance: -The total benefits remain fixed throughout the term period of the assurance policy. Such kind of policy is suitable to pay off a set lump sum. It is a type of mortgage loan.
3. Decreasing Term Assurance: - in this the total amount of cover and benefits reduces throughout the policy term. It is less expensive as compared to the other option.
4. Whole Life Assurance: - it is designed to secure the person for his entire. It covers the person for his / her entire life irrespective of the fat that when will he / she die.
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Article Source :
http://www.articleseen.com/Article_ Reason for purchasing life insurance policy_102806.aspx
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Author Resource :
Author provides you information about different terms of fast approval loan such as Term Assurance, Decreasing Term Assurance, Whole Life Assurance and more loans.
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Keywords :
Term Assurance, Decreasing Term Assurance, Whole Life Assurance,
Category :
Finance
:
Finance
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