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Life insurance In the Corona crisis- features and conditions needed

Life insurance - features and conditions needed

Life insurance is a form of insurance that pays monetary returns upon the death of the insured covered by the policy. Essentially, life insurance policy is a contract between the insured and the insurance the company, where the insurance company agrees to pay an agreed sum of money to the beneficiary bearing the name of the insured, as long as the insured's premiums are currently paid.
Life insurance - features and conditions needed

What is the purpose of life insurance

People take life insurance policies for a number of reasons. This insurance provides security for family members when a family member is lost. For example, if a family’s primary wage survivor dies, the death benefit received from this policy will help surviving family members overcome the burden of the tragic loss. The proceeds can also help pay the cost of the funeral when the death is unexpected.
Life insurance can be purchased by individuals, but it is also offered by many employers. Often times, owners of large companies and government employers offer life insurance at no cost to the employee.
Life insurance, and if the employee wants to get additional coverage from the employer’s insurance company, he can usually do so at reduced rates. In most cases, insurance becomes one time if the employee no longer works for the company.

How much does life insurance cost?

The cost of life insurance varies depending on factors such as the age of the insured, his health and his profession. Essentially, the more likely a person is to die at an early age, the higher the person’s fee.
For example, a 25-year-old male and non-smoking in excellent health would be much less expensive than a similar policy for a 65-year-old male smoker. Likewise, the skydiving coach must pay far higher premiums than that of the librarian.
How much does life insurance cost?

Types of life insurance

Life insurance is available in many different forms from several companies. Each company has financial representatives who help clients choose the best insurance products for their needs. Some typical life insurance policy models include full life, changing life, and long-term life.

Full life insurance:

With whole life insurance, part of each premium is paid for insurance and the rest is a tax-free investment. The full life policy sets a premium at the beginning of the policy, and this premium does not change over the life of this policy. This form of insurance permits cash accumulation during the life of the insured. These cash costs can be used during the period or this will simply increase the death benefit in the end.

Changing life insurance:

Life-changing products start with low premiums during the initial stages of politics, and these premiums increase steadily as the insured grows. There should be a cash accumulation as long as the various investment funds that the insured chooses perform well.

Life insurance:

The term life policy has premiums that remain the same over the life of this policy, which usually ends when the insured reaches a specified age. There is no cash accumulation in a term policy, and therefore, death benefits will not increase.

 What are the personal risks to the individual:

In his life, the individual faces many dangers associated with his person, which, if achieved, leads to limiting his ability to work and obtain income or eliminate his productive ability completely. Personal hazards can generally be divided into the following five types:
1. The risk of premature death.
2. The risk of retirement
3. The risk of permanent total disability.
4. The risk of illness and temporary disability.
5. The risk of unemployment.

The dangers of the first three groups lead to a total and permanent loss of income, while the fourth group dangers lead to a temporary or permanent reduction in income, or it may lead to a temporary loss of income only. As for the risk of unemployment, it results in total income cut off for a temporary period until the individual has access On another job.

Life insurance benefits:

1. Inexpensive, you can get, in a small amount, the insurance policy that you need. The temporary insurance policy is at least 10 times cheaper than a life insurance policy.
2. The temporary insurance policy is the best example of the idea of ​​insurance and the transfer of the risk of death to the insurance company, as it does not contain any savings part, unlike mixed insurance policies and life insurance policies.
3. The temporary insurance policy is used by banks when giving mortgage loans or any another loan to ensure that in the event of death or total disability the insurance company pays the value of the loan (the value of the insurance policy is equal to the value of the loan), and therefore the temporary insurance the policy encourages assumption.
4. The temporary insurance policy allows you to obtain insurance coverage only when you need it and for a specified period, and when you do not need it simply you will not pay its premiums, therefore you should pay attention to the period and the amount you need to insure your life, and most of the people who have young children are afraid of the loss of income They choose the temporary insurance policy until it becomes the youngest of their children at the age of 23 and be able to earn.

What are life insurance documents

The life insurance policy is a contract whereby the insurance company commits to pay the insurance amount to the insured, his heirs, or the beneficiary or beneficiaries specified in the policy, in the event of the death of the insured over his life, or if the insured has reached his life to a specified age in the policy, in exchange for the insured has to pay a single installment that is paid once upon a contract or annual installments.

Life insurance policies

 can be divided according to the benefits that life insurance beneficiaries receive into three main sections:

Section One :

Insurance policies that pay their sums to the heirs and beneficiaries in the event of the death of the insured, such as temporary insurance documents and life insurance policies.

Section Two:

Insurance policies to be paid in the event of the insured being alive, such as pure endowment insurance policies and life payment contracts (pensions).

Section Three:

Insurance policies that are paid in the event of death or life and are mixed insurance policies that guarantee the payment of the insurance amount to the beneficiaries if the insured dies during the insurance contract period or the insured person gets the insurance amount if he is still alive at the end of the insurance period.

What are the stages of contracting for life insurance:

Life insurance contracts are concluded between the insured and the insurance protection service applicant - the insured - according to a set of successive stages, which are:
1. Completing the insurance application.
2. Query.
3. Medical examination.
4. Underwriting.
5. Determine the insurance price.
6. Issuing the insurance policy.

Who are the people covered by the life insurance policy:1. believer:

He is the insurance company - the first party in the insurance contract - and he is the one who provides the insurance protection service and is obliged to pay the insurance amount in the event of the insured accident.

2. Insured:

He is the second party in the insurance contract and he is the contractor with the an insurance company who is obligated to pay the premiums on time to the insured and abides by the conditions mentioned in the insurance policy.

3. The Insured:

He is a person who is insured and whose life is insured, whether life, death, or both.

4. Beneficiary:

He is the person to whom the insured is obliged to pay the insurance amount in the event that the insured accident is realized from the insured.
It is noted that the rafts of the life insurance policy can be only two parties which are the insured and the insured, such as the insurance of one of his persons for his benefit for himself. In this case, the insured has three characteristics together and at the same time, the first characterizes him as a trustee, the second as an insured over his life, and the third as a beneficiary.

There may be three parties in the life insurance policy who are the insurer, the trustee, and the beneficiary, such as one of the persons who insured his life for the benefit of his wife. In this case, the husband has two attributes together, which is his attribute as a trustee, and it describes him as a believer in his life.
There may be four parties in the life insurance policy, who is the insured, the insured, the insured for his life and the beneficiary. For example, a person has insured his wife’s life for the benefit of his children.


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