What is life insurance? Life Insurance, an agreement made between the insurance policyholder and the insurer. Whereby the insurer pays an amount called premium to people for a death causality that unexpected or expectedly. This death could be a terminal or crucial illness if any of these happens then the insurance company takes the responsibilities. They will solve the problem by paying a sum enough for the burial of the individual.
Furthermore, this contract between the insurance company and the insurer or assurer is legal. Because of the kind of event about to take place later in the future. It always in writing to prove the kind of contract made so they won’t confuse.
Type of Life Insurance
When going for life insurance you need to understand that type of insurance. However, we have different kinds of life insurance which listed below:
- Term life insurance
- Medically underwritten term
- Simplified issue term
- Return of premium term
- Permanent
- Whole
- Universal life insurance
- Variable universal
- Guaranteed issue
- Accidental death insurance
these insurance are very good and has a well-assured premium at the end of the year’s duration you registered for in later years ahead.
Some Terms of the Insurance Policy
terms insurances companies use to make sure that their policy is always the best and makes sure they move forward. you can use this when applying to an insurance company.
- Premium: The money issued by the policyholder to the insurer in exchange for a life. It also makes sure the payment paid when due.
- Cash value: this is like lifesaver insurance that keeps some amount of money in the policyholders’ account. While the remaining part of the money is for a life cover the cash value can be of any of the following it might be.
- The policyholder might order for a loan from the saving account and then pay late with an interest on the payment made.
- While the gross amount paid to the insured is most at times the cash value in the policyholder. Which is not the premium paid.
- Sum assured: this is the amount agreed upon to be paid in the events that have later happened. Nevertheless, before the money would be given, they will investigate if the money should be given or not. It determines the kind of event that took place if it related to the event. they only give the premium to those who are qualified for the coverage.
In short, these terms might be considered a good choice to make sure you get settled and compensated well for the event.
Life Insurance Policy
life insurance policy as different alternatives and suggestions depending on the kind of company policyholder. This insurance company has its license from the national insurance commission to give life insurance policies to people who need the offer. Here are some of the policy which I will be listing.
- term life insurance: this policy is for those people who want to ensure their life for some years depending on the money they insured. Term life insurance means that the insurer is paying to the policyholder for a long-term duration.
- Level term: it depends on the premium the insurer paid for the policy he/she wants to insure.
- Single premium: the insurer to pay in advance between the agreement they had. Premium is the only acceptable money you can pay.
- Whole life: this insurance is like a life policy that will generate more benefits like an investment life cover permanently.
- Burial expenses: this will only cover a small expense during the death of a person.
- Group life insurances: this life insurance is mostly common among the Nigerians for employees or staff that offers a low premium trice their annual compensation. It a beneficiary sum for the employee.
- Keyman insurances: this insurance is mostly used by the CEO of a company or overseas company that ensures an amount for a beneficiary company. that supports their company mostly for important big business origination.
These are the different types of insurance policy to meet people’s specific demands or preferences which must be considered and be secured.
