What is insurance? Why it become popular in today’s life? Insurance protects one from financial loss. It becomes important because people want to save them from big loss from any kind of financial issues. Insurance is popular because if something is in loss or destroyed which is insured under policies then the insurer pays the loss. In this way, in today’s expenses, one can save them from future problems. There are many types of insurances that includes health insurance, car insurance, Life Insurance in Pakistan, education insurance and home insurance.
Life insurance is one of the famous insurance kind as its name shows that insurance of life. Life has many things to deal and in this way, life insurance secures most of the worst situations.
What is the meaning of Life insurance?
In life insurance, the whole life is secured during every worst situation or when one is not able to work which includes old age, illness, accident, death etc. Once the policies are complete insurer has to reimburse the money whenever the person needs it. Life insurance is for the world so, after death, it will help the family of the insured person.
What is the exact definition of Life insurance?
Life insurance is a contract between the insurer and the person who gets insurance. In life insurance, the insurer has to pay the amount of money to the beneficiary if the insured person dies.
Life insurance is great for those who are the only supporter of their family and all the family works dependent on them so if the worst happens then after their demise their family gets the resources to push life.
What are the types of life insurances policies?
There are different types of policies under the life insurance category. Each type has its importance in one’s life. The types are:
Whole life Policy:
The whole life policy is the most important policy as in this policy one can be insured for his whole life. In this category of life insurance, Life Insurance Companies in Pakistan will not pay the amount of money even if the insured person is in trouble or needs it badly. Because in whole life insurance the insured money is paid after the one who insured himself dies. During insurance policy, the nominee is selected by the person themself so he or she will get money after his death. The nominee is majorly from the family of the insured person.
Endowment Insurance policy:
Endowment insurance is very much popular today due to its benefits. This insurance is taken for a specific time. In endowment insurance, the insurer pays the money to the family after the death of an insured person with some bonus. The popularity of this insurance is due to the fact that after the specific time the insurance company has to pay the amount of money to the insured person. This provides pensions to old ones.
Term Insurance policy:
In term of insurance policy, the period of policies is specific. This policy is considered the lowest among all the insurance policies. Throughout the term of the policy, the premium is fixed, and it does not change. In the term life insurance agreement, dependents will receive the specified benefited amount in case of the untimely death of the person.
As the name showed that in this policy one get the money back. This type of insurance is very much popular and the reason behind this is that after the maturity of policies, one will get the money back after some time of insurance as survival benefits. This will guarantee the money to the insured person. In the case of the death of the insured person, his nominee will get the full sum assured to support their family.
Joint Life Policy:
The name shows that this policy is between two people. The policy is popular because, in the joint-life policy, two people get insurance at the same time under the agreements and insurance company policy. In this policy, the only important factor is that both of the partners should trust each other under the policy and agreement. The joint-life policy is suitable for those who share the same interest and wants the safety of their lives. This policy is commonly availed by business partners or husband and wife.
Annuity insurance is a type of life insurance in which one has to pay the amount as an instalment for a specific time. This insurance is mostly availed by the person who has extra money or wants to save it for their future. In annuity insurance, one will receive money after the specific time until his death. People prefer annuity for their better adulthood.
Pension Plan Policy:
The name of the policy defines the facility of policy. Pension plan policy guaranteed the fixed income after the specific time. This policy helps those who are retired and have financial issues. Pension Plan policy is different from others and commonly availed by those who need financial support after their retirement.