Life insurance for everybody. Why and how?

Life insurance is essential for everyone as it provides a sum of money in the event of death or total permanent disability where you are not able to work anymore. It is a policy between you as the policy owner and the insurance company.

The insurance payment depends on your entry age and your required sum insured. There are two types of payment either to pay lump sum or pay at a certain amount of cash which is usually known as premium. You can opt for monthly, quarterly or yearly premium payment depending on your ability. Make sure that the payment for your life insurance takes only about 10% of your monthly savings as you may have other commitments in the future. Once you have agreed to purchase the life insurance; you will not be able to terminate it. Or else the surrender value will be very low and it is not worth to terminate or change policy.

When you purchase a life insurance policy, you will have to fill in your beneficiary's name. If death case happens to you, the sum insured will be given to your beneficiary. You are allowed to put a few beneficiaries for your policy as well as the percentage of sum insured for each of them. In the case of total permanent disability, the sum insured will be given to you. Bear in mind that, only death caused by illnesses or accidents will be covered in the policy. You will not be able to claim for the insurance if you commit suicide.

Life insurance is a must for everyone as you might not be able to predict what will happen in the future. This is much more important if you have a family. Think of your beloved ones. If anything happens to you, at least you have some money for your family.

Lastly, be careful of the terms and conditions as different companies provide different policies. Make sure that you are clear before signing up for one.