If we reflect on life for a few moments, we realize that we are quite complex beings and know that someday, we have to leave this world. We might ask why we need Life Insurance Plans that offer compensation only after we have left this world but seldom think about our loved ones we leave behind. Protective Life Insurance is a better term since the premiums are intended for those loved ones we leave behind when we die.
Life Insurance Plans work on the same general principles as other kinds of insurance; Premiums are usually paid by the insured on a periodic basis and consolidated into an ‘insurance pool’ by the Insurer (in most cases, a well established life insurance company). In the unfortunate circumstance of death (even in the case of Senior Life Insurance policies), the family members of the insured, are compensated. In most cases, the sum assured is higher than the total premiums paid which means, the person with the Life Insurance Plan or the benefactors, get more than the total premiums paid at the end of the term or in the event of death. This is possible due to the ‘insurance pool’ concept since there are several fortunate and few unfortunate members that contribute to the pool by means of compensation.
Life Insurance Plans work on the same general principles as other kinds of insurance; Premiums are usually paid by the insured on a periodic basis and consolidated into an ‘insurance pool’ by the Insurer (in most cases, a well established life insurance company). In the unfortunate circumstance of death (even in the case of Senior Life Insurance policies), the family members of the insured, are compensated. In most cases, the sum assured is higher than the total premiums paid which means, the person with the Life Insurance Plan or the benefactors, get more than the total premiums paid at the end of the term or in the event of death. This is possible due to the ‘insurance pool’ concept since there are several fortunate and few unfortunate members that contribute to the pool by means of compensation.
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