Term Assurance policies provide protections for the policyholder for a selected period of time only. It is a very low cost type of insurance, however the payment will be made only if the insured person dies during the term of the policy.
Is it really necessary to have life insurance?
Personal Life Insurance Through InsureMe
A pure life insurance policy is defined as a contract between the policyholder and the insurance company, where the insurer agrees to pay a certain set sum of money to the policyholder's beneficiaries at the time of his or her demise. It is a way of securing the future of your loved ones in the unfortunate event of death.
For most families, the untimely death of the family's breadwinner can put them in dire financial problems. This is where a life insurance policy can be helpful, and a way of assuring that your family has a means of ensuring their normal day to day lives can go on unhindered, even after your death. This is especially useful if there are young children in the family.
Why getting a life insurance is important?
Irrespective of your family status, there can be many people who depend on you for their survival, whether it is your spouse, children, siblings or even parents. An unexpected death can cause financial havoc for those who are dependent on you. Here are a few reasons why getting a life insurance policy is important.
An insurance policy such as this, pays out a significant lump sum of money at the demise of the policyholder, and hence secures the financial future of his or her dependents.
Your income which paid for all daily essentials for your family, will be lost after your death. Even though the income is lost, it does not mean the expenses are gone too; these still need to be paid by the surviving members of your family. An insurance payout of this nature will be able to replace the lost income and ensure that your family’s lifestyle will not be hindered.
If you have taken any debts, these will need to be repaid even after your death. A lump sum insurance payment such as this, can help your family settle any outstanding debts.
The funeral expenses could be costly and during a stressful time such as the death of a loved one, your family will have to struggle to find the money to pay for these expenses as well. However, with an insurance lump sum payment, they will have a means by which to settle any funeral related expenses.
There are many different types of life insurance offered by reputed insurance companies in Sri Lanka. It is essential that you check all the relevant details before you choose a policy that best suits your lifestyle and requirements.
Factors that affect life insurance premiums
No two policies will be the same, and the premiums and benefits offered will depend upon many factors, such as:
Age is one of the main factors that affect premiums for this type of insurance policy. The younger you are, the lower your premium will be.
In general, premiums are lower for women than men.
When deciding on the premium and benefits, the insurer will consider your current and past health condition. Those people with pre-existing conditions or health issues in the past which can resurface will have to pay higher premiums
If your family has a history of certain diseases, there is a high likelihood that you also could get it. When there is a history of such hereditary illnesses in the family, the premium charged for the policy can be high.
People who smoke and consume alcohol have a higher likelihood of getting ill than others, and as such these people would have to pay much higher premiums.
If you are in a high risk job, then your premiums will be significantly higher than someone with a normal office job.
Your premium will change according to the sum insured.
There are many different types of life insurance in Sri Lanka
This is a term assurance policy with the option to convert it to a different policy, under certain conditions as specified by the insurer.
An endowment assurance policy is taken for a selected period of time, where the benefits are paid either at the death of the insured person within the specified period, or at policy maturity
Part of the premium paid under this type of policy is invested in a fund managed by the insurer. The benefits paid will depend upon the realized value of the units paid to the fund at the time of claiming
There are many other types of policies with varying benefits offered by life insurance companies and it is best to get all the information provided by them and check closely regarding special clauses, etc prior to choosing one that suits your requirements.
How to get your life insurance through InsureMe
Choosing the right policy to suit your specific requirements is easy, convenient and efficient when you use InsureMe. Simply enter your contact information on the form provided, and one of our team members will get in touch with you for more details.