Service
Life Insurance Service
Life Insurance Services provide financial protection to individuals and their families in the event of death or other life-altering situations, such as critical illness or disability. By paying regular premiums, the policyholder ensures that their dependents or beneficiaries receive a lump sum or regular payments, known as the death benefit, to cover financial expenses in the event of their death or other insured events.
Key Features of Life Insurance:
Death Benefit: This is the amount paid to the beneficiaries upon the death of the policyholder. It helps provide financial security for dependents and can be used for various purposes, such as paying off debts, covering daily expenses, or funding education.
Premiums: These are the regular payments made by the policyholder to keep the life insurance policy active. The premium amount depends on factors such as age, health, sum assured, and policy type.
Cash Value (in some policies): Certain life insurance policies, such as whole life or universal life insurance, build a cash value over time. The policyholder can borrow against this cash value or use it for other financial purposes.
Maturity Benefit (in some policies): In policies such as endowment plans, a maturity benefit is paid out if the policyholder survives the policy term. This amount can serve as a lump sum for long-term financial goals.
Tax Benefits: Premiums paid towards life insurance policies are often eligible for tax deductions, and death benefits are generally tax-exempt in many jurisdictions.