Another name for the life insurance is life assurance. This is a contract that is mainly arranged by an insurance company and a client. The client in this case is referred to as the insured while the insurance company is the insurer. The client pays an amount of money after the contract is signed. Premium is the payments made to the insurance company. It can be paid monthly or yearly. This will be based on the agreement that both parties has agreed. The money that is being paid by the insured is then held by the insurance company. It is then given to the beneficiaries upon the demise of the insured. There are some situations whereby the insured may take the money. when you have a terminal illness and you are unable to fund the hospital bills, then you can ask for your money. The money can also be taken to cater for funeral expenses. You can also use this platform as a method of saving your money.
Once you have decided to have a life insurance cover, you should make sure that you choose the best company. There are very many insurance companies in the market and for this reason, you can choose the insurance company that is going to serve your interests. Check h reputation of the company. You must conduct research to be able to select the best company. Ensure that insurance company that you choose is available. Another thing to check when looking for a life insurance company is the financial stability and this is very vital to check. Some sources to get the financial status of an insurance company is on the internet and on the newspapers.
There are factors to be met before you qualify for the life insurance cover. Age determines whether you qualify or not. The insurance company must check this before they sign you up for the insurance cover. You will also get varying products based on age. For instance, if you are found to be of young age, you are going to have more products to choose from. Old people are limited. There is a rule that gives the client the freedom to choose until he or she is sixty years of age.
Another qualifying factor is the gender of the insured. Females have a higher expectancy than males. In terms of expense, the men’s policy will be a bit expensive compared to that of women. Gender can also determine the premium that the person is going to pay to the insurance company.
Another determinant of the life insurance cover is the health status of the client. There is a physical exam that you go through when you are taking the cover and this will be used to tell about your health status. If you are found healthy, the premium will be lowed compared to that when you are not healthy.