Finance >> Life Insurance

Life Insurance

Do you love your loved ones? Do you want them to be happy even after your death? Then you should have taken a Life Insurance by now. With all time low in insurance cost, it should be the best time of your life to take an insurance policy to protect your family and yourself against any future mishappenings.

History tells that the practice of Life Insurance was found among the trading communities of China and Babylon in 5000Bc and 4500 BC respectively. The ancient Romans had burial clubs which paid for the cost of funeral expenses of members and helped their family on the death of the club’s member.

What is Insurance?

Insurance is a contract between the policy holder and the insurance company. The Company agrees to pay an amount of money on the death of the policyholder. This is risk coverage and the amount is paid in the event of death of the policyholder. The Policy holder has to pay premiums for the policy he has taken for a specified period. The amount along with the interest earned will be returned to the policyholder on the completion of the term of the insurance.

What factors to decide to take an insurance policy?

While taking an insurance policy the following factors are to be borne in mind,your health, goals and family history. Generally insurance is set for an average period of 20 years, with the fact that it takes those number of years for your children to become independent financially.

How are monthly premiums calculated?

Many factors are kept in mind while deciding the monthly premiums. They are health, lifestyle etc. These factors determine the insurability of the person. The policy price is calculated based on the administrative costs incurred, funds payable and profit. The cost of the insurance is calculated using mortality tables and this is calculated by the actuaries.

United Kingdom’s Insurance Industry

There are numerous insurance companies in UK which is offering a wide variety of insurance products. There is a large user base of insurance due the number of benefits it offers. The worldwide acclaimed insurance companies are offering their services to those seeking insurance.

There are a number of companies offering Life Insurance. Major players are Best Deal, Norwich Union, Low Cost, Direct line, Standard Life, Marks and Spencer.

The uniqueness of UK’s life insurance is its financial security. This financial security is provided to family members in the form of periodical premiums which ultimately mature into a lumpsum amount which is sure to help the family in a number of ways. There are additional perks that come in the form of critical illness cover, healthcare cover and some companies even give cashbacks. The other interesting part of insurance is the loans for education of children, Mortgage etc.

How to take an Insurance policy?

First you should get quotes from a number of insurance companies. Find out the best one that is suited for you in terms of monetary benefits and profit you can make. After deciding on the company you need to give your personal details and ensure that the information is authentic. Health details should be very precise as this factors decides the insurability of the proposed policyholder.

After taking the policy rest assured that you have put your family in a blanket of safety even after your death.

It is true that life and death are the two facets of a coin. And as long as a person lives he ensures that all of his/her family needs are covered without any setback. But, what after we die? Who is going to pay for our children’s education? How is our spouse going to manage all the liabilities? And so on and so forth.

Life insurance is the best answer for all our worries. Through the life insurance we can secure the future of our children and ensure that our spouse won’t have to face any problems. Enrolling for a life insurance will guarantee that most of our family needs are covered in the event of our death.

There is no doubt that every person needs a life insurance. And it is important for a number of reasons. Some of them are
  • Financial support to your family - It can help reduce any financial burdens that may be there on the event of your death.
  • You have a long termed mortgage - The pay offs of a life insurance policy can arrange for the repayment of mortgage dues.
  • If your family is dependant on a single earner then the proceeds could be helpful in reducing the burden of the loss of a primary earner.
  • Payment of childcare expenses and education fees.
Apart from the above reasons, the premiums that you pay are minimal compared to the benefits you gain. Here, at, we guide you on how to choose your Life Insurance provider. And what are the qualities they must posses, so that you can avail the benefits from a Life insurance.

Life Insurance is popularly known as “term assurance”. It is a policy offered by an insurance company that supports your family financially in the event of your death. But, wide array of policies are offered by different insurance providers and each varies from the other. They can vary based on the face amount, premium to be paid and length of Insurance Coverage.

There are certain factors you ought to keep in mind while opting for a life insurance. Firstly, decide on what sort of cover do you need? That is, do you want the policy to cover your children’s educational expenses or to clear the mortgage payments or to manage your business needs or to support your family to lead a standard life in the event of your death?

Once you have decided for what purpose you need the life insurance, next determine the type of life insurance. Do you need basic life assurance or more extensive critical illness cover, and so on? There are various types of life insurance offered by most of the insurance companies like the term insurance, whole life insurance, variable life insurance, universal Life Insurance and endowment life insurance. Each type has its own benefits and pitfalls.

The cost of premiums on the policies varies depending upon certain factors such as the type of policy, the policy term, the benefits offered, the number of people covered, and so on. It also depends on other factors such as your age, life style, family’s medical history, working conditions and so on.

Opting for a Life Insurance is the vital decision for both you and your family to lead a peaceful life. So, before enrolling, ensure to know all the terms and factors of the policy. Based on your financial capability and needs, decide on the one which suits you the most.