It is so obvious that insurance is widely used nowadays in every nook and corner of the world. Almost everyone has taken insurance in some form or the other. But it is no wonder to see more than 60% of population has taken personal life insurance in countries like UK and USA. The Association of British Insurers had invested 20% of the investments in the London Stock Exchange. They had gathered 400 insurance companies and insurance services about 90% of UK for this purpose.
Great fire of London, in 1666 recklessly killed more than 40000 people, which transformed the perception of life insurance from convenience to urgency. Lloyds of London, is the leading insurance company in the insurance market. It was started by Edward Lloyd in late 1680s and now they are providing end number of policies and services. They are not like other insurance companies. They deal in an appealing manner addressing the needs of millions far better than others.
Insurance companies pool the resources of all the insured in the form of premium and indemnifies some who incur loss. They usually invest the pooled resources in some stock exchanges, bonds and securities, purchasing land, etc. and earn adequate profits to run their business like compensating the losses incurred for the insured party, paying off taxes, underwriting expenses, etc.
Personal life insurance policies are of many kinds like whole life insurance policies, term policies endowment policies, and universal life policies. Each one has its own features. In term policies one need not wait to reap the harvest till he dies, at the age of 65 policies comes to end whereas in whole life policies the amount is paid out only at the event of death. In any kind of insurance the insurer will indemnify the loss of the insured with equitable amount.
Oops!!! What happens if bread winner of the family dies suddenly???
Gone are the days where the whole family ruins in financial terms if bread winner of the family expires unexpectedly. Now it’s time to say bye to such worse scenarios faced by the members of the family. With life insurance coverage, the insurer will help the family members of the insured in the event of his death in order to help his family overcome financial ramifications. It would be so oblivious to ignore the fact of insuring against one’s own life. Any man of common prudence would opt for personal life insurance as one is exposed to many risk factors in his own life like accident, fire, natural disasters, etc.
One should act with diligence while taking the life insurance policy so that it quickly hammers the financial crisis of his family. Financial advisors help can also be sought. One should consider many key points like the premium amount to be paid every month, duration of the policy and when he will get benefit, etc. In very few countries like UK and USA tax concessions are available at the time of maturity when agreed sum is being paid to the insured.