Life insurance

Life insurance is a legal contract between the policy owner and the insurer. In this agreement the insurer agrees to pay a specific amount of money upon the occurrence of untimely death of insured person or other event, such as illness or disability. In return, the insured person agrees to pay a fix amount called a premium after regular intervals of time. In some countries death and funeral expenses are also included in policy premium. One of the biggest reasons to buy life insurance is to provide money and protect your family after you're gone.
There are two basic types of life insurance, term life insurance and whole life insurance.

Term life insurance

It provides life insurance coverage for a specific period of time ranging from 1 to 30 years which offers protection for the smallest premium. You can purchase these policies again for the same term because they are renewable and amount of premium may be varied. Some term policies are convertible to whole life insurance policies and you can protect your family s’ future for smaller premium.

Whole life insurance

It provides death benefits as well as a cash value component for the protection of your family. Life time policies generally has high premium and gives you financial protection forever. The amount of insurance policy, which you want to buy, depends on your income. The easiest way to calculate the amount of insurance protection that you want to buy is to estimate the total amount which your family need if you died.

Premiums

The premium payments depend upon many factors i.e. your age, health, your family health history and the type and amount of life insurance. Be sure about the payments of premium and the benefits which your policy provides because premium payments may change in some types of life insurance.

Submit an Application

If have decided to buy a life insurance policy, fill out an application form which contains about your health and lifestyle. Your medical test report along with your life style will help the insurance company to offer you a policy.

If you qualify for insurance write the contract carefully by considering policy provisions, the amount of benefits, the premium, and other charges you'll have to pay along with other significant information.