Life insurance represents the legally-binding contract between an insured person and an insurance company. The insurer pledges to grant the insurance benefits in exchange for the regular premium paid through the insurers repurchases.
The ‘financial protection’ for life insurance is offered by a standardized life cover also called sum assured. For life insurance contracts to be enforced and your insurance estimates to be accurate it is necessary to clearly disclose your current and past health status. Typically you pay an individual premium or regular premium as your choice when buying life Insurance.
Who needs life insurance?
Anyone and everyone needs life insurance. he term, premium and the cover may differ but one thing is sure than everyone needs life insurance. It’s like buying a car insurance or in even simpler way to understand buying a cover for your mobile phone. Everyone buys insurance every time without even realizing. There is not a single person on this planet who does not buy insurance.
Life being the most valuable thing, requires the most attention while buying life insurance. Its like ensuring there is no monetary problems in your life both when you are alive and when you are no longer there. People mistake life insurance as something that one buys to get money when they are dead. This is a misconception, life insurance is mainly bought to ensure you have a great life.
Why is it said “Sabse Pahle Life Insurance?
It’s said so because if the source of the income generation is not there what’s there to invest. Investments, asset creation are all secondary things, life insurance is the top most important thing for any person.
Do wealthy/rich people need life insurance?
Wealthy and rich people need insurance more than anyone else. The simple explanation behind this is that they need to protect their inflow of money and safeguard anything that can affect the money coming in.