Choosing An Insurance Policy

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Insurance is a service that has grown to be appreciated over the years. It is a mutual exchange between two parties, an insurer and the insured. An agreement is made where the insured pays a certain amount of cash on a regular basis, usually annually or monthly, until a certain period is complete. In the case of an unfortunate death or the end of the period, the insurer pays the insured, or parties under him, the stipulated amount in the agreement. This is the basic protocol of any insurance service. However, there are several types of insurance policies. They include:

  • Term insurance

This is usually the most common. It is also referred to as term plan. In this policy, the insured seeks to gain financial security over his family and loved ones in the case of untimely death. The insured pays a certain amount of money monthly or annually until the term ends or he or she dies. If dead, the next of kin received the fixed amount that was stipulated in the agreement, whether the term is over or not. The benefit of this is that the family of the person is assured that they are secured financially in the case of sudden death

  • Health insurance

This is also more or less like term insurance. However, the risk being covered here is medical and not fatality. The scheme seeks to cover your medical issues and bills in hospitals considering your premiums payments. This is a great policy since you get free medical check-up and treatment. Accidents are unavoidable and medical bills are usually high. If not well prepared, you might end up suffering. However, taking up health insurance takes care of all this, leaving you secure in case of any medical unfortunate circumstance.

  • Endowment plans

This one is rather different compared to the first two. The first two highly regard security in the case of unfortunate occurrence. On the other hand, this one is basically for investment purposes. More like the term plan, you deposit a fixed amount of cash to the insurer every regular period. At the end of the term, the insurer gives you all the money back, usually with some interest. This is ideal when you have plans and need to save up for it e.g. to buy a yacht at 50.

The best thing is that you can be able to find quotes online and compare them in choosing the best company click here. You could even find no-exam life insurance quote that works quite fast and reduces unnecessary hustle.

We provide the best info about term life policy. For further details on this topic, visit the provided links!

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