A life insurance policy is one type of financial product which ensures financial security for the beneficiary after the death of the life insurance policy coverage owner.
About life insurance policy:
Main aim of a life insurance policy is to protect life of insured person & his or her family. In case of any unfortunate event that causes insured person’s death, company shall take care of families.
-The death benefit will be enough to maintain living expenses of the family for one year
-It can be used as a settlement for the parents or spouse for their inheritance
Pros of life insurance policy:
Life insurance policy helps you take financial protection in event of an unfortunate loss of your life. Insurance companies typically provide a policy to cover 100 percent of monthly pre-tax salary.
-Money to pay off property
-Money to pay off the loan on car
-Accumulated money in the policy that can be used to purchase another home or finance a home improvements
Pros of life insurance policy:
To purchase a single premium life insurance policy, one should buy it from insurance company with whom he is already insured. Insurance offered under a standard term policy is not a term insurance.
It doesn’t cover all aspects of your life, especially if you have dependents
You will not have full cover if you are unmarried, married or if you are divorced or widowed
Cons of life insurance policy:
There are many factors that go into a good life insurance policy. The insurance company can sell the policy to a third-party life settlement company too, which can potentially offer higher returns.