Life insurance assures the insurance holder that his/her family would be provided with a certain amount of money after the person’s death. There might be other clauses or rules that are added in the policy designed by the policyholder and the policymaker. There are two types of life insurance:
1) Personal Life Insurance:
An individual owns this insurance either for himself or for family members.
2) Group Life Insurance:
Group Life Insurance is the insurance that is owned by a group of employees working for an organization.
Principles on which life insurance must be based:
1) Proposal and offer:
The concept of this life insurance is on offer and acceptance. The company makes a proposal to the policyholders and if they accept the proposal, they start implementing the contract.
2) Insurable interest:
The policy should have insurance so that the policyholder is benefitted with some financial interest on life insurance.
3) Utmost good faith:
The information about the terms and conditions of the company should be very clear. The company should show utmost honesty to the policyholder so that they can trust the company.
Why should we get life insurance?
- Your loved ones are secured and safe when you are no more:
One must focus on this essential factor. Even though you are not alive, your family is counting on you. It is better to make your loved ones secure so that they do not face any problem after you are gone. Nowadays, the expenses are increasing. It is better for you to secure your family so that they have enough financial security and can live their life properly.
- Dealing with debt:
Having a life insurance will help you handle financial debt during difficult times. Any kind of loans like personal, home or any other loan can be more easily managed if you have a life insurance from a good company.
- Life insurance supplements your retirement goals:
When you have life insurance you can have regular savings for retirement from your regular salary monthly. If you have a proper pension plan, then you can avail some amount monthly when you retire.
- Buying insurance is cheap when you are younger:
It is better that you get a life insurance policy when you are young because it will be cheaper, and you will not suffer in the future. It is important to have a life insurance when opting for a student loan or home loan. The policyholders have fewer coverage costs when they are single.
Life insurance is very important, so that we have our back up plans in future. If you are planning to get your health insurance, you may search for life insurance in Kenya on the internet for more information.
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