The Essential Guide to Life Insurance & Its Use

A question that we often at a young age find mind-boggling is the actual meaning and purpose of life insurance. Most of us think that buying an insurance policy is nothing more than squandering money over something unneeded. However, that is not the case. In fact, life insurance is one of the most important and rewarding assets that we can ever invest in throughout our life. Now, if you’re thinking about how, this post would answer most of your questions in a simplified manner.

Ques. 1. What exactly is life insurance?

Life insurance is simply a contract between an insurance policyholder (buyer) and an insurance company (seller) in which the insurer agrees to pay a quantity of money in exchange for a premium upon the demise of an insured person or after a specific amount of time is known as life insurance.
Hope you understood now that a life insurance policy is a contract or an agreement.

Ques. 2. How does it work?

When you buy a life cover or life insurance through an insurance Broker Calgary, you pay a set amount of premiums for a set period of time, and in exchange, you get a Life Cover. These premiums are paid annually, or monthly depending on the terms and conditions of the policy that one pays for. These premiums are to be paid for a set period of time and if anytime during the period covered if the policyholder dies, the life insurance company pays a lump sum pre-decided, to the nominee chosen by the insurance holder.

Ques. 3. Is life insurance of any use?

Certainly Yes. It absolutely is a no-brainer and must be invested in. This is mainly due to the fact that life is pretty uncertain and tomorrow cannot be predicted. So, life insurance works as an armor that protects you against any attack of nature on the policy holder’s life. In short, the clear benefit is that in case of your death, your family will not have to face any financial crisis as they will be paid the entire insurance policy’s money in a lump sum after the demise. This would ensure that your loved ones don’t have to suffer mentally.

Ques. 4. What is the right age to get oneself life insured?

The simplest answer to this question is “the younger, the better” which implies that one should have life insurance soon as they become eligible for it.

Ques. 5. How to get yourself life insured?

In order to get oneself insured, one should consider meeting an insurance agent. If you are in Canada, you should reach out to Mr. Harpinder Sidhu, a top insurance Broker Calgary, who would make things easier and the process simpler for you. Plus, his team would guide you through the entire terms and conditions at a pace at which you would be able to comprehend.