Lets start by learning what is insurace is how its works.i will also tell you how its works with easy example let start its.
what is life insurance and how does it work?
And life insurance is specifically designed But there is one thing that we are % sure of We might pass away or due to an accidentYou see, insurance is a product designed You see, there are many unexpectedat least financially should a disaster happen or we might pass away due to an illness that is we will pass away some day in our lives things that occur in our lives to protect your beneficiaries financially shouldto provide you a measure of protection,you pass away one day
So what exactly is life insurance and how does it work?
And it is my hope that I can pass this experience And when you pass away your beneficiaries,For example your kids or elderly parents Having been in the industry for years,However, if there is no one that requires youI have a unique view of what worksLife insurance is a contract between an insurer My name is Waqas Now before we move on, I just want Now the next question is should To put it simply, you pay a sumWaqasi and I’m also the family leader You should buy a life insurance if you haveand a policy holder in which the insurer guarantees and what doesn’t in the financial planning world anyone who may depend on you for financial support beneficiaries upon the death of the insured have to go through the same struggle as I havelike yourself to become successful financial planners of Sanjay Mentoring family which helps financial advisers of money called the premium to the insurer payment of a death benefit to the namedsum of money called the death benefitto give you a quick introduction of myselfto support financially, then life insurance is not requiredto the new generation future financial advisers so that they don’t usually your family members get a lumpy ou buy a life insurance?
Now let’s take a look at a typical example
On life insurance we have John, a year old sole breadwinner of a family with a wife and two lovely kids Like most families, John has a property on mortgage , kept aside in cash and the same amount he owes to a creditor in debt of $, Now if one day when John passed away, his estate would have to be distributed Firstly, his , cash set aside might be taken away by his creditor Secondly, because he’s the only one working in the family, his property on mortgage might be taken away as well This leaves his wife and kids with no shelter and no money to survive His kids might also be in college and will be deprived of the needed funds for education But wait can all these problems be avoided if and only if John had a little life insurance?
Now let’s take a look at what happens if John did purchase a life insurance policy If John did purchase a life insurance, his commitment will be to set aside a portion of his income and give it as premium to XYZ Insurance Company Upon John’s death, XYZ Insurance Company will provide John’s family a lump sum that is called the death benefit, which will go to his family Now, this lump sum of money can be used to pay off his mortgage loan, his family’s expenses, and in most jurisdictions, this sum of money is being protected from his creditors His children now also have the required money to go into college Now you see why life insurance is important to everyone with a dependent