What is Life Insurance?

Life Insurance as the name suggests is the policy which insures the person’s life and provides financial protection to their family in case the insured dies. The beneficiary named in the policy is provided a lump sum of money and hence is safeguarded by the financial loss caused by the death of the insured. Thus it is important to know the right kind of insurance policy that will give financial stability to your family if they ever need it and it will also give you a peace of mind. There are various types of life insurance policies in the market and it is very important to pick the one which suits your requirement and budget.

There are various factors which need to be kept in mind before purchasing life insurance coverage. The first and foremost thing that should be kept in mind is your current financial condition and the kind of standard of living you would like to give to your family or the dependents. It is advised to keep a check and to revise your life insurance coverage every year or in case of major events in life like marriage, having children, divorce or when you buy a house or start a business.

When taking up a life insurance coverage the insured need to take a call on the time period for which he/she wants the coverage and the amount that need to be paid.

These are some important factors which will come to picture in case of certain events like when you are into some dangerous sports like:

  • Diving
  • Parachuting,
  • Aviation,
  • Mountaineering and
  • Motorsports to name a few

Into occupations which involve high risks like:

  • Oil & gas industry
  • Working at heights
  • Pilots,
  • Army men,
  • Fishermen etc.

When you have a medical history like:

  • Diabetes,
  • Cancer,
  • Family history,
  • Bowel conditions,
  • Weight
  • Mental disability, depression, anxiety or stress
  • Smoking,
  • Male homosexuality etc. to name a few.

To get appropriate advice on the type of life insurance, the term and the amount, you may need the help of Life search Advisors. They will give you the best advice and the life insurance policy that will suit your actual circumstance. Sometimes the employers take life insurance policies in the name of employees and is called dead peasant insurance and an employee comes to know about it only if the employer willingly discloses it.