As it’s name suggest Life insurance is insurance for your life contract you made with Life insurance company,
So Life Insurance is a contract between you and a Insurance Company, You have to agree to pay for the policy on time to time and the Companies agree to pay you sum of money to the Beneficiaries if you dies,
So to choose one which is really completes you needs is a very important factor, as there are different option to choose within the Life insurance as;
- Term insurance
- Whole insurance
And on the top of that, Life Insurance is also affected by;
- Medical History
- Family health history
- Adventure hobbies
Yes, You read that right, most of the Life insurance companies, ask for the above createria, The more you are fit and healthy, the more you are likely to be eligible for Life insurance.
Related; Insurance for beginners ; Insurance and it’s types
You get a option to made payment for a life insurance company on Monthly,Bi-annualy or Yearly basis.
Let’s say you choose Term insurance,
The company will tell you how much you will get on maturation period, that is after 15 year.
Now, your Job is to credit the amount to their account which you agree to pay them from time to time, you should not failed to pay them.
While you are making deposit credited money to their account, they( insurance company) will put those amount to Loan, or Deposited them for higher interest. Expected that you will not needed that amount before the term.
If unexpectly, you die before the maturation period, you beneficaries can claim the amount on the behalf of you, So they can live their life even without your presence.