Why Do You Need A Life Insurance?

By Liz Tanner

The necessity to have a good life insurance occurred when people felt the need to protect themselves. Our life and health may be affected anytime by uncertain events, including death. People's lives have always been threatened by forces of nature, fires, storms, lightning, floods, earthquakes and volcanic eruptions causing death, injury or illness. Life insurance represents an agreement by which your loved will receive financial support when you die or in case of illness and accidents.

Life insurance is a complex product that covers the risks of death or accident followed by permanent disability or loss of working capacity, for a determined period. The sum insured can be fixed or may vary. This contract provides many advantages, including financial and psychological comfort, a decent lifestyle, and a safe future for children, etc.

This policy is a financial resource for your family, which can be used when something happens. If an unfortunate event affects your ability to work, all those who depend financially on you will suffer. Consequently, it's extremely important to have a life insurance in order to protect the loved ones.

Who needs a life insurance? If someone depends financially on you, most likely you need life insurance. It will cover the needs of your family when you'll die. Just imagine the following situation: if you die tomorrow what will happen to your loved ones? It is true that pain can be cured with money, but at least your family won't suffer because of its financial situation.

Insurance companies usually cover the risk of death. Besides you, you will benefit from other advantages, the insurance policy covering a wider range of risks, assessed depending on several factors: health, gender and age, etc. You must search for information before signing the contract. Opt for a company that offers multiple benefits for a low price. Keep in mind that it's important to have a life insurance that covers the risk of permanent disability (in this case, the policyholder receives an amount of money for this type of risk), the risk of hospitalization and surgery, the risk of accident, etc.

Terms and conditions of a life insurance contract may differ from company to company and from product to product. In general, the contract contains informtion about insured risks, exceptions, fees and commissions, suspension or termination of the contract, etc. When you read the life insurance contract, make sure you understand which events are insured (death, disability, survival, etc.); also, read carefully all the terms specified, because some situations are not covered by the insurance policy (exceptions).

Get a professional opinion, asking for the advice of an attorney. Keep in mind that a sales person may take advantage of your lack of knowledge. It's not only about you' we're talking about the future of your loved ones. - 33372

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