Many people feel obliged to take care of the weak in society. On the other hand, the law required parents to take care of their children in all aspects. It is also human for parents to take care of their young ones by providing the best possible environment. Since the future is uncertain, these people undertake various measures to reduce the impact financial loss their beneficiaries would experience if they were to die unexpectedly.
A life insurance policy is paramount in making sure that beneficiaries are paid a certain sum of money upon your death. Such funds can be used in sorting out various financial struggles associated with death of an important bread winner such as completion of mortgage payments, settling of debts and conducting a decent funeral.
There are different types of life insurance policies which are majorly classified as whole life insurance and term assurance. Just like the name suggests, whole life policies last indefinitely such that beneficiaries of the insured are given a specified sum assured when you die. On the other hand, term assurance only lasts for a certain period of time after which the insured can redeem and use the sum assured. In term assurance, beneficiaries can also be compensated when death happens prior to the date on which redemption was possible.
Anyone wishing to apply for a life insurance cover should declare their health status and should also allow doctors recommended by the insurer to perform various tests. This is meant to ascertain the health condition of an applicant prior to having their policy approved. Insurers are also able to determine the level of risk an applicant brings to the enterprise before approving their application.
Disclosure of all material information with regard to the health of your family is essential in establishing any risks which the insurer may be exposed to due to occurrence of hereditary diseases. Life insurance policy documents therefore require thorough information which should be filled keenly to avoid incidents of misrepresenting any information unknowingly.