Writer Name: Oscar Smithers
location: Burlington, VT 05401, USA
Contact email: firstname.lastname@example.org
Life insurance is a contract through which a contract is paid by a certain amount of premium and the other party will pay the sum assured as compensation for the death of the premium or the death of the premium. Considering the needs of the bidders, the companies offer different types of services. The borrower reserves the right to service according to the contract. The responsibility of insurance companies is to serve the recipient according to the contract
Life insurance is not a general product. There is a lot of misconceptions about the life insurance policies that are common to people, for example-
1. I do not need to buy my life insurance policy: the statement is not true. The main truth of life is death. The person who runs the whole family in earnings, in the premature death of the man, the family falls into uncertainty, the life cycle wants to stop. In the long run, daily life becomes difficult for children to have problems with their children’s education, treatment, and marriage. In the case of life insurance, the bachelor employs one or more nominees, to give the nominee the prescribed insurance cover after his death. Therefore, if the life insurance letter is purchased, it is not possible to meet the shortage of the person, but it can be possible to overcome some financial problems.
2. Insurance companies offer less profit than the banks: If the money is not deposited by the insurance policy, the money will be returned to the account holder or his nominee by depositing the money and fixed amount, if the money is deposited in the bank’s name in the name of the FDR or any other name. But life does not take any risk. It is not always proper to compare life insurance policies with the bank’s profit. Because the purpose of the two is different. Banks maintain custody of deposits only, while life insurance companies work on financial risk related issues.
3. Borrowing of life insurance policies involves the loss: an investment in buying a life insurance policy. No amount of money wasted If you buy the policy, get insurance claim from the bribing company. By claiming this insurance, the recipient can meet the temporary financial problems, develop a work and keep yourself and the family free from economic anxiety.
4. I have a lot of resources so there is no need for the insurance policy: Lots of wealth creates a lot of time. It is necessary to see that total liabilities (current liabilities and long-term liabilities) are less or less than total assets. If the total liability is higher, then the deficit can be met by purchasing an equivalent insurance policy. Life Insurance Policy is a long-term investment. A portion of the profits earned from this investment can be measured in the sum of the money, the other part is not measurable.
5. There is no need for a life insurance policy: Life is at risk. Risks may exist or may come in the future. Because the future is unknown. So life should be purchased even if there is a lonely life insurance policy.
6. Institutions have arranged for me group policies: Sometimes the employer provides group insurance for its officers and employees, where the officials and employees have their own life insurance, but other family members leave life insurance. As we grow up, other members of the family have the responsibility, we also have our duty to them. So, if your life is risk-free, there will not be peace if the life of the other members of the family is at risk.
7. I have a policy, so there is no need now: the price of life cannot be properly evaluated in the figure. There is no specific limit to buying a life insurance policy. The capable person can purchase the as much life insurance policy as per his wealth.
8. There is no need for a large number of insurance policies: Depending on the amount of insurance cover a person needs, it depends on the socioeconomic status of the person. Proper funding is required to meet medical care, liability payments, childcare etc.
9. Without buying a life insurance policy, we will invest anywhere else: risk is available only through all investments. The only life insurance policy acts as a means of reducing/controlling risk. If you purchase a life insurance policy, tax relief is available to a certain extent.
10. I can not get nominee insurance for my absence: insurance business is based on a policy. All parties associated with the insurance contract have to comply with the policies. Insurable interest in insurance is an important principle. It is not possible to ensure that there is no insurable interest in life. For example, people have the insurable interest in their own lives. Both husband and wife have the insurable interest in their lives. However, the debtor does not carry any insurable interest in the life of his creditor. If all other information, including insurable interest, is correct, there is no restriction on obtaining the nominee’s claim on the absence of a bribe.
There may be many more ideas/comments except for the above examples. Insurance around the world is going to play a role in risk reduction. It’s also like a co-operative. Whereas another member contributes to the risk reduction in other people. It is also a good investment, as it is possible to reduce financial risk, without the slightest disregard of insurance and buying at least one policy for the other members of the family. Life insurance policy does not encourage people to buy, it is to sell. Almost all life insurance policies sold in Bangladesh are sold through insurance agents. Insurance companies will train their agents in such a way that they can understand the needs of policyholders and sell them accordingly.