Life insurance is a financial instrument that supports the family of an insured person in case of death through a lump sum of cash called the death benefit.
Getting insured happens this way:
- A person pays premium every year to a life insurance company.
- The company invests that money.
- When time comes for you to claim the money, you and your family get more than what you paid for.
Life insurances are for:
- Breadwinners with dependents. Life insurance can serve as an income replacement for a couple of years.
- People who have loans that could be passed on to the people they left behind. Life insurance could pay for these loans.
If you don’t have a beneficiary yet, focus on Health insurance more than life insurance (Health insurance vs. Life insurance). However, if you plan to have a family in the future, you have to consider life insurance.
Life insurance and its riders covers death, accidents, permanent disability, critical illness.
There are Three kinds of life insurance.
Ready2Adult PH. (2020, October 4). LIFE INSURANCE FOR BEGINNERS | INSURANCE 101 PHILIPPINES | What you need to know. https://www.youtube.com/watch?v=kWBS4WKa7yA&list=PLX5F5fa6EHdq0fCY9ehomzPNaUoYekLkP&index=2