MoneyTree

What is Life Insurance?

Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The insurance company promises a death benefit in consideration of the payment of premium by the insured.

Why Life Insurance?

Have you ever think if you are the only bread owner of you family and if something unwanted happened to you then how will your family will survive? How can they cope up with their daily needs and long term goal? The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured.

Of course, nobody can replace you in your family emotionally but Life Insurance can support your family financially to survive in the bad times. They will able to survive their life the way you have given them.

Just imagine you are not there physically, but some of your friend takes all your financial responsibility of your family, how it feels? Your wife, your children are at least coping up with their day to day expenses and also able to achieve their long term dreams which you have dreamt for them. That’s it. This is Life insurance, your best friend who will take care of everything you promised to your family without any compromise.

Now the question is how much Insurance do you require? Or How can you calculate the Sum Assured?

The General formula we use for our clients is:

(Annual Income + Loans & Liabilities + Financial Goals) * 30

So basically it should be 30 times of Sum of your annual income, liabilities and financial goals.

How to select the Insurance Company?

We need to consider some points while selecting the Insurance company.

• Reasonable Premium
•  Claim Settlement Ration
•  Application Procedure
•  Simple and easy to understand product
•  Services

Must Remember:

• PLAN FOR UNEXPECTED
• Insurance is a cost and not an investment.
• NEVER MIX INSURANCE AND INVESTMENT