The best country in terms of health insurance

Life insurance can also be referred to as life assurance or life cover depending on the insurance company of
your choice. The general definition of life insurance is a legally binding contract between an insurance
company and an insured individual where the insured agrees to pay a certain amount of money as premium
either in lump sum or in instalments with a promise of financial benefits to designated beneficiaries, chosen by
insured individual, in case of demise or critical illness or terminal illness. It is one of the schemes that can help
you as an individual to be sure that you can sort out all the financial needs of your family even when you are
absent. Your family can use this money for child care and education, household bills, pending mortgage
payments and some insurance companies even include any final hospital bills you may have left as well as
funeral expenses in the cover. When taking life insurance, you are the determinant of how much money your
beneficiaries will receive and this will also determine how much premium you will pay. It is important to choose
an insurance company which will offer you the best policy. This will allow you to know when your life
insurance will be available for your loved ones. Some offer term life insurance which you pay for a certain
period and are only valid in case you pass away during a specifically defined period after which the benefits
cannot be payable. There is also permanent which is valid in case you pass away at any time.

Why do you need life insurance? If you have a family that depends on you as a financial pillar, your
departure may cause them more than emotional pain. This is because they will have lost whatever income
you contribute to their lives. Life insurance helps you to be sure they will not go through financial distress
upon your demise. Your partner will jot struggle and your children will be assured of completing their
education comfortably. In case you had taken a mortgage, life insurance will come in handy as your loved
ones will be able to continue making their payment on time without much struggle.

The cost of your life insurance is determined by several factors. These include; amount of money you

would wish your beneficiaries to receive, your age at the time of taking the insurance, your health, and health
history as well as that of your family, your lifestyle that is in case you are a smoker or consume alcohol, your
gender and your occupation.

Although life insurance is not an investment package, some insurance providers will offer a policy that
includes an investment product also known as an endowment policy or investment linked life assurance. For
such a policy, your premiums are divided in such a manner that some will go towards the final payments to
your beneficiaries while some will be invested. While alive you can utilize the amount invested in case of an
emergency or situations defined in your policy. Nevertheless, the final payout cannot be accessed until you
pass away in which case it will be payable to your beneficiaries.

While we hope to be with our loved ones for as long as possible, life insurance your way of ensuring you

can sort them even in your absence.