Despite an ample number of insurances existing all over the country today, life insurance remains the most demanded one among all. Even Insurance providers agree that life insurance is overlooked more.
With a very simple design, life insurance is 100s of year old.
So, How exactly do Life Insurance Functions?
Firstly, the policyholder pays the insurer or the insurance company a dollar amount known as premium. In return for the premium, the insurer assures to pay money as a death benefit. The death benefit is handed over to the beneficiary chosen by the policyholder. As long as the premiums are paid, the insurer is committed to paying the death benefit to the beneficiary.
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There is no specific age to acquire a life insurance policy. Everyone can avail the benefits of life insurance. But most people with a family prefer life insurance to make sure their financial stability even after their death.
An appropriate time to get insurance is when someone finds himself liable for the well-being of his family members or spouse. Especially, if the person is the only breadwinner, in that case, he/she should surely purchase life insurance.
There were minimal rules when insurance was first introduced in the market hundreds of years ago. Back then, even criminals taken life insurance policies and killed their beneficiary & collected the funds. This may sound funny but this is the clear picture of insurance at its initial stage without any strict rules and regulations. But soon, the insurance companies found the fraud incidents happening in the market and they came out with a solution for the same known as insurable interest. Insurable interest means that someone related to policyholders can only be the beneficiary. And today, anyone without an insurable interest cannot acquire a life insurance policy.
Following are considered under the insurable interest:
- A Child
- A Souse
- A Grandchild
- A Parent
- An Aunt/Uncle
- A Sibling
There are mainly two types of Life Insurance. Although both of them pay death benefits, they vary in terms of the time period.
Also Read: Short Term Health Insurance
Whole Life Insurance is the first type of insurance in which you keep paying your amount and the insurance will cover you until your death.
Term Life Insurance is the second type of insurance in which the policy provided for a specific period of time. Mostly the time periods are 10, 20 or 30-year policies. This policy also allows purchasing the plan at a guaranteed premium. Most families opt for this policy as this is an affordable option.
Leading Life Insurance Companies
1. Pacific Life-
This is one of the distinctive insurance companies providing a list of interesting as well affordable policy structures. Apart from offering options of indexed life insurance, Pacific Life also renders standard term & permanent insurance policies.
No doubt that Pacific Life is one of the pocket-friendly life insurance providers.
2. State Farm-
Operating all over the US excluding 3 states, State Farm renders numerous options that will fit your needs. Residents across the states can achieve the benefits of comprehensive term life policies.
With a munificent conversion policy, State Farm allows the customers to switch to a permanent plan. Policyholders aged less than 75 years can easily switch whenever without taking any other medical examination.
3. Life Insurance by Bestow-
Life Insurance by Bestow is suitable for people on a fixed budget. Known as one of the best companies on the market, Bestow is a combination of aged quality joined with modern technology.
Transamerica renders large range options of term life insurance. Transamerica is known as one of the best policy providers for providing flexible coverage choices. While most of the insurance companies need applicants to have a health exam before they are accepted for the policy. It also allows people to skip the examination if they are under a specific age & also do not smoke.
Life insurance not only saves your money but will also leave behind an egg in the nest for your loved ones!