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By: Harry Jones

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Monday, 30-May-2011 11:29 Email | Share | | Bookmark
The Advantages of Life Assurance Plan

Life is definitely uncertain today therefore having a life assurance policy is a must. Its benefit is much more important compared to other insurances currently available since it involves life. This kind of industry has aided numerous individuals to handle the charges of unfortunate events like death and accidents in a very cost efficient manner. However, many individuals still don’t fully grasp the real definition of life insurance.

A life assurance plan is generally a legal contract signed between a covered person and the insurance company by which the former should pay for a certain sum of cash at the death of the insured individual or in case a person suffers from a critical illness or accident. It protects the people particularly your dependents who rely on your earnings to live on.

Choosing the best life insurance coverage might not really your main concern particularly if you are so busy and coping with a lot of problems. You may prefer to ask an advice from a mortgage agent in order to make things simple but it means you may not have bought the cheapest life assurance policy.

Many people think that a life insurance plan is for compensating the funeral charges of the policyholder. Even though this can be one of the reasons to obtain a life insurance still this is not what the insurance policy is made for. It is basically intended to replace the cash that is lost by the policy holder’s death and to be used to compensate for the needs of the deceased insurance holder in case you don’t have money to survive every day. In case you have family who depend on your income, then it’s very necessary for you to get a life insurance.

Life assurance is a blend of insurance and investment. It sometimes pays out the cash same to the higher of whether a specific minimum amount underwritten from the coverage or its investment analysis. The expense of investment depends on the insurance company’s coverage. In case you will die within a Life Assurance policy's term, the company then instantly pays the higher of both the specific minimum sum and the collected cash value of the yearly investment additional benefits. However if you are still living after the policy comes to an end, you sometimes get a bigger compensation.

Nevertheless, you should understand that most life insurance companies won't pay out if you intentionally commit suicide or being killed by a named beneficiary within the first two years as a policy holder. One more thing also is that once you apply for life assurance you must be able to answer some personal queries about financial and health matters. However you don’t have to worry about that as there are experts to assist you to get a life assurance policy that is right for you.


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