A life insurance policy is a financial protective shield one has for their family. Life insurance plans ensure a lump sum payment to the beneficiary on the occurrence of the death of an insured person. This is done to cushion the family members from the sudden loss. In the wake of emotional and physical damage, the family is still financially protected in exchange for individual premiums from the insured person.
These premiums can be monthly premiums for some years or a lump sum amount. The details of the insurance can vary from policy to policy. However, the policyholder should make sure that they yield maximum benefits from the investment they are making in the plan in the form of premiums.
Several benefits can be added to life insurance, like funeral costs and other coverage. These can be looked into in-depth while understanding what life insurance is? Life insurance benefits can also be availed in extraordinary situations like that of a critical illness. Life insurance serves both as a protective as well as an investment plan.
In the case of the sudden death of the only earning member of a family,life insurance policies help the family keep afloat while trying to get back on their own. Life insurances can be great investment sources as well since premiums are eligible for a tax deduction.