Life insurance can also be known as a life assurance. life insurance can be defined as a contract made between the insurance company and the clients. Some terms used is the insured referring to the clients and the insurer referring to the insured. The client pays an amount of money after the contract is signed. Premium is the payments made to the insurance company. It is mainly paid on a monthly basis or annual basis. This will be based on the agreement that both parties has agreed. The insurer will in return hold the money paid by the insurer. The money will be given to the beneficiaries that the insured will leave behind after his or her death. There are some situations whereby the insured may take the money. In case you have a terminal illness and you are incapable of funding the hospital bills, the insurance company can give out your money before you die. You can also use the money and this is by planning your funeral. Life assurance is also a savings plan.
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. To get such a company, you have to carry out a research to determine an insurance company that will serve you well. 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.
For you to be able to have a life insurance cover, there are some qualifications that you must meet. Age is an important factor. You must meet a certain age for you to get the life insurance cover. Age will determine the kind of products that will be available for you. There are more products available for the young. There are limited products for those who are old. 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. Therefore, the insurance policy for men will be higher than that of women. Gender can also determine the premium that the person is going to pay to the insurance company.
The health of the insured will determine whether he or she qualifies for the life insurance. 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. You will have lower premium if you appear healthy.