What is life insurance and how does it work

What is life insurance and how does it work

Life insurance is a necessity. But how do you get it and how does it work?

Life insurance is a great way to ensure the safety of your loved ones even after your death. The conversation may be hard to conduct, but it is one that must be had. It essentially helps your family maintain their lifestyle and offers you peace of mind.

How does it work?

To understand how a life insurance plan would work for you, we will have to first understand what are the kinds of life insurance plans available.

1. Term Life Insurance:

A term life insurance provides coverage only if the person passes away within a specified period of time. With this policy, the end of the term insurance can be set depending on a time duration or as an age limit.

It involves a consistent requirement of premiums and will be considered void if even one is missed. Term Life Insurance also works only if the event happens within the specified time period. If not, the beneficiaries do not receive any payouts.

2. Whole Life Insurance

The second type of coverage works without an age limit or a time period specification. The beneficiaries will be eligible to receive payments as long as you have ensured that the payments are being made at the right time for it.

Another thing whole life insurance has is the cash value. If you were to sell your whole life insurance, you would be able to get money instead of it. It builds up over time according to your premium payment.

3. Universal Life Insurance

Universal life insurance combines the benefit of an investment account with an insurance policy. The value of the policy may wax or wane depending on the kind of investments you have made.

This type of insurance also holds cash value and it can be used as collateral for a loan.

Final Word:

The insurance market has a variety of plans that help you curate one which suits your family the best. Taking help from an insurance broker from Canadian LIC Inc and can help you find the right one at the right price with more ease and comfort. They are experienced individuals who know the market like the back of their hand.

Get in touch with an expert and get your peace of mind. Connect with Canadian LIC for your life insurance today.