Life insurance is when an insurance company such as Mathenia Insurance Group is obliged to provide a death benefit to the insured in consideration of the payment of premium that is made by the insured. Life insurance is also called "death insurance" but people find that unappealing since it is like wishing for a loved one to die by paying for it. Despite that, it is still an insurance for death. In totality, insuring yourself is for the economic loss that the family would have to deal with if you die.
What are these economic losses?
- if you are the breadwinner in the family and your income will suddenly be lost as a result of your death
- In cases where the insured is a stay-at-home mom whose services are very important to the family
- If it is the child who is going to die and parents need to pay for the expenses
- If it is an individual who is ill and has to undergo a lot of medical treatments therefore acquiring lots of bills to pay
- If the insured is the key person of the business which is known as the "key man" coverage, therefore causing a lot of damage to the business
The estate planning insurance is where a person needs to pay for his estate taxes in case death befalls him
- agreements based on buying and selling wherein the life insurance will be able to fund any business transaction in case an untimely death will happen to the insured
- In case the insured will meet an accident, he is covered by an accident death insurance
- There is also a policy that is able to pay for mortgage in case something bad will happen to the client and this is called the mortgage life insurance
The services of insurance companies should be a lot better by now since it has been around for about a hundred of years already. These insurance companies have established a mortality table which enables them to see how long it takes for a typical person to live. You may think that these patterns could be wrong but it is actually quite accurate that is why life insurance companies are able to count on the number of people who are going to die at a certain age. The insurance companies are able to derive all the payments of the insurance policy from these tables and the information that it presents. Get more info from www.matheniainsurancegroup.com.
The cost of your life insurance depends on the annual cost acquired each year.
In this contemporary life, there are a lot of modern medicines that are creating which help in lengthening the span of life. With this said, it has certainly decreased the premiums in life insurances.
Read more here: https://en.wikipedia.org/wiki/Life_insurance.