Why life insurance? Any individual on whose income someone is dependant should take life insurance to guarantee the financial security of the dependent in case of an untimely death or terminal illness of the earner.
This is the key intention of a life insurance policy. If you want to explore regarding the whole life insurance rates comparison, then search the browser.
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However, life insurance policies offer a plethora of choices securing not only the future of your loved ones but also your own by acting as investments thus providing for your financial needs like buying a house, marriage, and post-retirement needs.
Life insurance as mortality risk cover
Often an income earner has others depending on him for financial needs, they may be one's children, parents, or other family members.Life Insurance is a contract between the policy owner and the insurance company offering life insurance, to pay a designated sum to the beneficiary if death or critical illness of the insured occurs.
Life insurance as investments
When you choose to take an insurance policy, you systematically set aside an amount towards the periodic payments of premium thus 'disciplining' yourself to save.This money is further invested depending on the type of product you have bought, for example in ULIP.
Life Insurance products like pension plans/annuities ensure wealth accumulation to provide a regular source of income after retirement.