Introduction

Life insurance refers to a contract between an individual and an insurance company whereby the individual pays a certain amount of money to the insurance company in return for protection against a certain loss that may result in death. The person referred to as an insured, benefits from the insurance coverage by receiving a sum of money if they die within a specific period. The following are the benefits of life insurance;

1) Protection

The life insurance policy protects against death in case of accidental death and/or concerning the terminal illness. This insurance helps family members to avoid the financial strain that may result from the death of an insured.

Life insurance may provide for the support of a person’s dependents after death, including spouse, parents, children, and others. The dependants of an insured may also receive other benefits from their life insurance policy depending on how it is written.

2) Replacement of Income

In case the insured dies, the income will be replaced for the period of coverage. The income can be used to maintain normal living expenses during the period until a suitable replacement can be found.

3) It a saving plan

Life insurance safeguards the standard of living of an individual in the event of death. In case of accidental death, life insurance may also provide income in the form of a lump sum payment. There are different types of life insurance policies available in the market, each with its advantages.

4) Financial Security

Life insurance provides financial security in a variety of ways, including protection against death, loss of income, funeral expenses, and a bequest to loved ones. In case of death, the beneficiary will receive the life insurance money. The spouse is more likely to have more expenses with the passing away of a spouse due to funeral arrangements and paying off loans.

Conclusion

Life insurance is generally a very important investment for individuals and their families. The benefits of life insurance are many and therefore this kind of policy and plan can provide significant benefits to the individual as well as the members of the family.