 
LIFE INSURANCE FAQ
1. Why should I take up a life insurance policy?
The life insurance
policy is usually a kind of protection scheme which would allow your family
or beneficiary to survive financially after your death. This is called
as the death benefit. And if you think that your family requires monetary
support after you are gone then it’s better to take up a life
insurance policy.
2. Which is best term life or permanent life policy?
In the term life insurance the duration of your policy exists only for
a certain period of time. And if you live longer than the specified time
period then the policy expires. Here the initial premiums are less but
as you grow older the premium amount increases. So term life
insurance is the best when you don’t need a life long insurance. But
the permanent life insurance policy gives you a life long protection.
This policy also provides you with loans which must be paid back. The
permanent life insurance is a bit more expensive than the term
life insurance if you don’t want the insurance for long.
3. What are the different types of permanent life
insurance?
There are 3 types of permanent life insurance:
v Whole life
v Universal
v Variable life
The whole life insurance is just like a normal
life insurance, in which the premiums have to be paid for a specified
time or for the entire life. But the premium amount would be constant
here.In the universal life insurance, first you have to pay an initial
amount later the premium amounts can be paid at your own will. You can
also modify your death benefit amount.The variable life insurance would
separate the term life and cash portions. And it allows you to manipulate
the cash portions as you like.
4. What is the procedure for getting a life insurance
policy?
First an application form should be filled and submitted to the insurance
company. After the application form is processed the insurance company
would conduct a medical exam and if all their conditions are met. Then
the company would issue the policy.
5. How much should I insure?
This depends on your financial background and the amount
you think would be sufficient for your family. Many financial experts
suggest 10-20 times your annual earning to be insured.
For more informations on our services contact insurance
brokers John Good|
Kelly Good
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