Life insurance also referred to as life assurance is a contract made between an insurer and the insured or assured for financial protection upon their death. The beneficiary is usually required to receive money that the policyholder paid as premiums either as a lump sum or on monthly or yearly basis upon their death. The money cannot be only paid upon death but it can be paid when the policy holders suffer from a critical illness of becomes terminally ill. In the contract, it can also include the expenses likely to be incurred during the burial preparations for the policy holder. Life insurance policy usually falls under two categories which include protection policies and investment policies. Protection policies are made in a way that the beneficiaries of a policyholder or the policyholder themselves can get a lump sum payment upon the occurrence of the risk insured. The investment policies enhance capital growth through single or multiple premiums.
There are various factors that influence the amount of life insurance policy premiums that the policyholder is required to pay. Higher premiums are likely to be paid by people who have advanced in age unlike those that are young. Gender which also influences premiums paid determines how long a person is likely to live through the use of statistical models. The health conditions also influence the amount of premiums where people with underlying medical conditions may have to pay more unlike for the healthy one. Engaging in risky behaviours for a person’s lifestyle may lead to higher premiums. The policyholder may also want their beneficiaries to continue leading a certain kind of lifestyle even after their death and this will influence the premiums to be paid.
There are various life insurance companies that one may decide to take an insurance cover from but need to make sure that they possess certain qualities that guarantees the policyholder that the future is secured. Friends and families can be very resourceful in giving someone recommendations for a suitable life insurance company. Reviews on various life insurance companies and ratings will enable one to get a suitable life insurance company which has been rated highly and reviewed well on their life insurance policy. There are also other factors that one can use to get a suitable life insurance company. It is important to go for a life insurance company that has operated for several years since they have a better understanding of all complex matters that may arise in the insurance sector. Complaints can be common when it comes to life insurance cover but one can check from the sites that allow customers to pass their complaints about the ones with least or no complaints.