Life insurance has always been a widely discussed subject. If we ask how people from different countries feel about it, we will receive different opinions- some people consider it as a taboo, while others believe it is a must-have. Is it an essential part of our lives?
The way this service is called suggests its ability to ensure our lives and protect them from danger. But what does it really do? Certainly a piece of paper could not save our life in a car accident for example.
It is a contract. The parties signing this contract are the insurance company, the insured individual and the one whose life is insured. In case of the latter's decease or terminable illness, the insurer is responsible for paying a certain amount of money to the beneficiary or beneficiaries mentioned in the contract. The policy holder is the one obliged to pay a predetermined sum of money to the insurer, either in a lump sum or at intervals. In most cases the owner and the insured person are the same individual.
Financially supporting the family of the deceased insured one is the main purpose of this contract. Apart from this, different insurance companies provide different options to their clients, therefore the end date of the contract, the costs or the insurability of the client can vary.
Having taken this into consideration, it is safe to conclude not everyone will find this product advantageous. For example, a person who has no family is not likely to find it an attractive offer. What's more, is someone's health is bad, or they are a fan or parachuting or diving for example, they are likely to end up paying for a very expensive service. This is so because they can be considered 'high-risk' clients for the company either due to their health indicators or their passion for what the company would consider as dangerous hobbies.
But let's take a look at the subject from another point of view. Not many people have the financial possibility to guarantee the welfare of those around them in case they are no longer there to support them. The prospect of what the family will have to go through is a daunting one. The world we live in is changing daily and it is hard to feel relaxed and at ease when thinking about the future. Last but not least, tax-free payout is an option some companies offer to the beneficiaries.
There is also another way to look at things though. Few people feel at ease, content that even if something happens to them, their family is provided for financially. Some policies also offer options for tax-free payout to the beneficiary. Nowadays it is becoming increasingly harder to feel comfortable with the speed with which our lifestyle changes. No one knows what the future holds, and the thought of our children struggling alone in life is daunting.
One can never go wrong deciding to protect his family. Furthermore, there is something which deserves as much attention in preventing eventual disasters, namely protecting ourselves or our business. It goes without saying that this is an option everyone- with or without a family, should carefully consider. Business misunderstandings can be costly and have very bad consequences.
Some people say that not knowing what will happen next is god, others- that it's bad, but one thing is for sure- we can never be certain something life-changing won't cross our path. The best way to act is to prepare for the bad things that might come, and thus enjoy our good moments to the fullest.
The way this service is called suggests its ability to ensure our lives and protect them from danger. But what does it really do? Certainly a piece of paper could not save our life in a car accident for example.
It is a contract. The parties signing this contract are the insurance company, the insured individual and the one whose life is insured. In case of the latter's decease or terminable illness, the insurer is responsible for paying a certain amount of money to the beneficiary or beneficiaries mentioned in the contract. The policy holder is the one obliged to pay a predetermined sum of money to the insurer, either in a lump sum or at intervals. In most cases the owner and the insured person are the same individual.
Financially supporting the family of the deceased insured one is the main purpose of this contract. Apart from this, different insurance companies provide different options to their clients, therefore the end date of the contract, the costs or the insurability of the client can vary.
Having taken this into consideration, it is safe to conclude not everyone will find this product advantageous. For example, a person who has no family is not likely to find it an attractive offer. What's more, is someone's health is bad, or they are a fan or parachuting or diving for example, they are likely to end up paying for a very expensive service. This is so because they can be considered 'high-risk' clients for the company either due to their health indicators or their passion for what the company would consider as dangerous hobbies.
But let's take a look at the subject from another point of view. Not many people have the financial possibility to guarantee the welfare of those around them in case they are no longer there to support them. The prospect of what the family will have to go through is a daunting one. The world we live in is changing daily and it is hard to feel relaxed and at ease when thinking about the future. Last but not least, tax-free payout is an option some companies offer to the beneficiaries.
There is also another way to look at things though. Few people feel at ease, content that even if something happens to them, their family is provided for financially. Some policies also offer options for tax-free payout to the beneficiary. Nowadays it is becoming increasingly harder to feel comfortable with the speed with which our lifestyle changes. No one knows what the future holds, and the thought of our children struggling alone in life is daunting.
One can never go wrong deciding to protect his family. Furthermore, there is something which deserves as much attention in preventing eventual disasters, namely protecting ourselves or our business. It goes without saying that this is an option everyone- with or without a family, should carefully consider. Business misunderstandings can be costly and have very bad consequences.
Some people say that not knowing what will happen next is god, others- that it's bad, but one thing is for sure- we can never be certain something life-changing won't cross our path. The best way to act is to prepare for the bad things that might come, and thus enjoy our good moments to the fullest.
About the Author:
While it might be mandatory for your organization to require a professional indemnity insurance, it is certainly a good idea to protect your business in any case
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