Life

Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries when the insured dies. A capital will be handed down to your loved ones in case of critical illness, total or permanent disability, or death.  

Life insurance plan allows you to have the following flexibility :   

• You freely choose the amount of capital that will be paid to your close ones. 
• You freely designate your beneficiaries, 
• The paid-up capital is exempt from taxes and inheritance tax in most cases and according to the legislation in force 
• The amount of the subscribed capital is paid shortly after a potential accident 

The insurance company promises a death benefit in exchange for premiums paid by the policyholder. 

Life insurance provides security to the surviving dependents or beneficiaries of the insured in case of the death of the insured. Some examples of categories of people requiring life insurance are:  

1. Parents with minor children to insure their future and provide their children with financial resources in case of the death of the parents
2. Parents with special needs adult children must take even more care to provide their children with the essential financial support in case of their demise. The death benefit can be used to fund a special needs trust that a fiduciary will manage for the adult child’s benefit
3. Joint property owners with loan debt will ease the financial liability on their partners in case of their death
4. Elderly parents who want to leave money for their children
5. Young adults whose parents have incurred a student loan debt or have co-signed a loan for them
6. Young adults who want to get life insurance with low premiums

Life insurance offers essential protection to your family members and covers a wide range of death causes including old age and terminal illness. However, there are some exclusions to this coverage: 

• Suicide: If the policyholder commits suicide within two years of purchasing their policy, they are not eligible for death benefits. 
• Illegal activity: When someone dies as a result of illegal activity, their family cannot claim their death benefits. This includes everything from drug deals gone wrong to DUI crashes. 
• Risky activity: Any death due to risky activities, like skydiving or rock climbing, are usually counted as an exclusion. 
• Substance abuse: If a policyholder’s death is the result of drug or alcohol abuse, it’s excluded from their policy. 
• Misrepresentation: If you are found to have lied about your age, or provided any false information to your life insurance company, you aren’t eligible for your death benefit.

Age is one of the most influential factors while purchasing a life insurance. Irrespective of the insurance being a term or a whole, age plays a crucial role in determining the premium amount as well as qualification for life insurance coverage. Typically, we see an increase of about 8-10% for every year of age. Term life insurance allows the premium to be the same throughout the policy whereas with whole life insurance the premium rises every year.

Switching policy provider at the time of renewal, that is when your current insurance is near expiration, is straightforward. However, it's important to maintain the continuity of coverage while switching insurance providers. Our team at BLACAZ is always eager to assist you, so get in touch if you have any concerns.