Life Insurance Overview And Benefits

Life Insurance

Although many of us are tempted to believe that our health is invulnerable, unfortunately often the reality is different. How would your family cope if all outstanding loans and all debts would fall on their shoulders, if something unexpected happens? When your loved ones depend directly on you, concern for their safety and comfort can block some of your initiatives.

Here are some reasons why you should benefit from a life insurance:

• You can cover the financial needs caused by the inability to work and income loss due to hospitalization, surgery, critical illness and death.
• Life insurance represents financial security – it can represent the only source in unexpected moments, mentioned above, which generate costs difficult to sustain by the family.
• Are essential for people who want to financially protect their health, family and people in care.
• Benefits from life insurance are non-taxable.

Life Insurance

Considering the above aspects and the existence of the unstable economic situation in Europe, the conclusion of insurance covering the risk of death is a problem that any person should consider, avoiding therefore creating an imbalance in the offsprings financially dependent situation. If case of the insured person’s death, life insurance provides money to a designated beneficiary.

Life insurance is a contract signed between the insurer and the insured in favor of a beneficiary or multiple beneficiaries. The purpose of this contract is the sum insured, which is established by both parties or at the request of the insured. Depending on the sum insured and other factors the size of insurance premium that the insured will have to pay over the duration of the contract at predetermined time intervals will be established.

The contract involves three people:

Insurer – The insurance company in return for insurance premiums that will cover the risks that threaten the insured and undertakes to pay compensation, the amount insured in case of undesired events.
Insured – the person or entity seeking the contract that will pay premiums for the determined duration of the contract.
Beneficiary – the person designated by the insured, who will receive the sum insured if case of the insured’s death. The beneficiary can be changed at the request of the insured during the contract.