How to choose the best life Insurance policy for our family & which policy is good a low installment.
Hey guys in today’s article I want to
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Share with you about
what is life
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insurance and how does
it works you see
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there are many
unexpected things that
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occur in our lives we
might pass away
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due to an accident or
we might pass away
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due to an illness but
there is one thing
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that we are a hundred
percent sure of that
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is we will pass away
someday in our
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Lives
What is life insurance ? |
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You see insurance is a
product designed
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to provide you a
measure of protection
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at least financially
should a disaster
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happen and life insurance
is
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specifically designed
to protect your
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beneficiaries
financially. Should you
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pass away one day.
So what exactly is
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life insurance and how
does it work now?
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Before we move on I
just want to give
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you a quick
introduction of myself my
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name is Pritam Kumar and
I'm also
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the family leader of
Sanjay mentoring
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family which helps
financial advisors
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like yourself to
become successful
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financial planners
having been in the
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the industry for 16 years
I have a unique
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view of what works and
what doesn't in
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the financial planning
world? And it is
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My hope that I can
pass this experience
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to the new generation
future financial
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Advisers. So that they
don't have to go
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through the same
struggle as I have life
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insurance is a
contract between an
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insurer and the policyholder in which the
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insurer guarantees
payment of a death
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benefit to the named
beneficiaries upon
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the death of the
insured to put it
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simply you pay a sum
of money called the
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premium to the insurer
and when you pass
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away from your
beneficiaries usually your
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family members get a lump sum of money
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called the death
benefit.
Now the next
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question is should you buy life insurance? |
you should buy a life
insurance if you
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have anyone who may
depend on you for
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financial support for
example your kids
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or elderly parents
however, if there is
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no one that requires
you to support
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financially then life
insurance is not
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required now let's
take a look at a
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typical example on
life insurance.
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We have John a 50 year
old sole breadwinner
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of a family with a
wife and two lovely
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kids like most
families
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John has a property on
mortgage 20,000
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kept aside in cash and
the same amount
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he owes to a creditor
in debt of $20,000.
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Now if one day when
John passed away his
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the estate would have to
be distributed
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firstly his 20,000
cash set-aside might
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be taken away by his
creditor secondly
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because he's the only
one working in the
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family his property or
mortgage might be
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taken away as well
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this leaves his wife and
kids with no
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shelter and no money
to survive his kids
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might also be in
college and will be
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deprived of the needed
funds for
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Education, but wait
can all these
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problems are avoided if
and only if John
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had a little life
insurance now let's
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take a look at what
happens if John did
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purchase a life
insurance policy if John
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did purchase a life
insurance his
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commitment will be to
set aside a
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portion of his income
and give it as
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premium to XYZ
insurance company upon
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John's death XYZ insurance
company will
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provide John's family
a lump sum that is
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called the death
benefit which would go
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to his family now
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this lump sum of money
can be used to
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pay off his mortgage
loan his family's
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expenses and in most
jurisdictions this
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sum of money is being
protected from his
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creditors his children
now also have the
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required money to go
into college now
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you see why life
insurance is important
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to everyone with a
dependent.
I see most the people search on google about those lines which are...
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Searches related to the life insurance policy
But in this article answer as a what is life insurance and how to buy life insurance. |
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