Some simple advice about Life Insurance, What is it and why might I need it?
Life Insurance cover is a sensible way of investing money so that in the event of a persons death the money will be made available to family or business partners. This money can help with the cost of funerals or to cover the loss of an income.
Below we will take a brief look at Life Insurance this should help you understand a little more about the subject.
History of Life Insurance : Insurance has been about for a very long time and it’s origins have been dated back to 5000BC in China, Insurance started as a way of reducing the risk to wealthy traders. However Life Insurance like we have today only dates back to ancient Rome where Burial Clubs covered the cost of the members funeral costs.
The modern Life Insurance that we have today started in the 17th century in England, Originally as insurance for traders, merchants, and ship owners.
The first sale of Life Insurance in the United States began in the late 1760’s. Many Insurance companies in the United States started out as a way of insuring the lives of slaves for their owners.
What is Life Insurance?: In case you do not know what Life Insurance is, It is a contract between the policy owner and the insurer that monies will be paid upon the death of the person on the contract.
In other words the policy will state that the insurer will agree to pay a sum of money in the occurrence of the insured individual’s death or other stated event such as terminal/critical illness.
In return the policy owner will agree to pay a specific amount known as premiums at regular intervals or in lump sums. These are legal contracts and the details will need to be read carefully as the contract will describe limitations.
Specific limitations are often written into the contracts to limit the liability to the insurer, A common limitation is that an insurer will not pay out in the case of suicide, fraud or war.
Why do I need Life Insurance?: No one likes to think about death, especially your own.
However you need to consider your loved ones, family or business partner/s. Coming to terms with losing someone is never easy and the financial burden can make things a lot harder.
By having Life Insurance you can help support your family or business partner/s after you die. As well as Funeral expenses you can take out insurance that can include: Mortgage repayments, Celestis funeral ideas, replacing the primary earner’s salary, property tax protest Houston, replacing childcare expenses, or education expenses.
There are several types of Life Insurance that can be suited to your personal circumstances so it is important to search which one is best for you and in getting the best quote.