What Is Life Insurance Policy And 10 Things You Must Know About It.

What is a Life Insurance Policy?

A Life Insurance Policy offers financial protection by way of a guarantee that the insurance company will pay a specified sum to the beneficiary of the policyholder in the event that the policyholder dies during the term.

10 Things You Need To Know About Life Insurance

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Pay for long-term care expenses

Long-term care insurance can be expensive so adding a rider to your life policy may be an economical way to get it. You can also find special packages that combine long-term and life insurance.

Benefits for terminally ill patients

This incentive is known as living benefits and it's standard on many terms. Although living benefits are often used, they are not well-utilized by the business. Living benefit clauses allow those with a 12-month life expectancy or less to receive a portion of their death benefit in advance.

A source of cash if you're disabled

Some insurance policies include critical illness or chronic sickness riders. These riders may pay cash out to policyholders if they become incapacitated, or suffers from invasive cancer, heart stroke etc.

Protect the life of your child

Parents can buy a policy specifically for their child or add a rider on their existing policy. Numerous insurers offer kid protection riders at a low cost and with different levels of coverage.

Reduce your taxes during retirement

Policyholders have the option to use their life insurance as a personal retirement plan. You can set this system up so that policyholders don't have to pay premiums.

To Know More About How Does Life Insurance Work and Why is Life Insurance Needed?