Life Insurance

What does life insurance policy means?

Life Insurance Policy is the policy issued for the risk cover of the financial loss that may occur due to loss of human life. A life insurance policy is an agreement between an insurance company & a policyholder that offers financial coverage under which the insurer guarantees to pay a certain amount to the nominated beneficiary in the unfortunate event of the insured person demise during the term of life insurance plans.

Why the people should buy the life insurance policy?

Life insurance policy is an instrument to give cover to the monetary loss occurred in any family due to any mishappening of the earning person of the family. If any damage occurred to the earning person of the family then that family enters into the problem of having less money or no money and thus enters into the trouble. So to save our family from getting into this situation one should buy the life insurance policy. “No one in the world knows when what is going to happen to him/her, it is only we can take various action to prevent ourselves from entering into any type of troubles.”

How life insurance policy covers the risk of life to us?

Insurance means risk cover instrument. Some insurance companies create a pool of same people who require the particular type of insurance and accumulate money from the people. The accumulated money is being invested and stored for meeting the claims made by the people. As the claim doesn’t made by all at one time, so they being able to give the claim any thus companies covers the risk of monetary due to damage of life.

What is human life value?

Human Life Value (HLV) is a present value of future income means earning. An earning person will going to earn and accumulate the money on his/her survival upto the earning age that future income is called as Human Life Value.

Why we need to define our financial goal before buying a life insurance policy?

It will always be good to define our goal and then plan and act to achieve that goal, rather than moving up without knowing what we required. This is why we require defining our financial goal. Financial goal define that how much money at what time will be required by the person or his/her family

Why we should seek for financial advisor before buying an insurance policy?

For any project or investment, companies always hire an expert or consultancy firm, a group of expert. Same way financial advisors are the experts which provide service to the individuals or families to have the good returns on their investment, making good portfolio to achieve the individual goal. Thus, it’s always being good to hire or refer financial advisor before buying an insurance policy or going for any type of investments.