What Is Life Insurance And The Benefits

Currently, the increasing number of people who feel the need to have a self-protection through life insurance or life insurance. This is an insurance product that will guarantee the insured from financial losses due to the occurrence of an unexpected thing. For example an accident that causes total disability or death.

Life insurance aims to protect the financial condition after the insured experiences something that causes him to die. If the insured is the breadwinner of the family, the family’s financial condition can be disrupted due to loss of income. This is where the function of life insurance plays a role so that the family’s financial condition can be guaranteed and protected.

Benefits of Life Insurance

Life insurance provides financial benefits as well as investments to you. Here are some of the benefits of this insurance:

1. Financial Protection for Heirs

As a policy holder and an insured in life insurance, you are indirectly providing financial protection to your family. The insurance company will pay the sum insured and compensation if the insured dies and the amount is not small. The money can be used to meet the needs of family life or heirs after the death of the insured.

2. As Death Costs

When the insured dies, of course, the family must pay for the funeral. For some people, the cost of managing the corpse, funeral and taking care of its administration is not a small amount. With life insurance, the cost of death can be met through the compensation provided so that the family does not need to be confused.

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3. Benefits of Protection for Critical Illness

Some life insurance products also provide additional benefits, namely protection against critical illnesses. Examples of critical illnesses that are quite common in the community include stroke, high blood pressure, cancer, heart disease and so on. So when one day you have to be treated for a critical illness, you don’t have to worry about the cost anymore.

4. Pension Fund

Another benefit of life insurance is as a retirement savings fund when you are no longer working. If it turns out that until the policy expiration date you have never made a claim, your money will not be lost. The insurance company will continue to pay the sum insured for or even more than the premium you have given so far. You can use this money to support your family after you retire from work.

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