Life insurance is a contract between an individual and an insurance company. The insured individual pays a premium and the insurance company agrees to pay a specified sum of money (benefit) upon death or maturity of the benefit usually between 10 to 15 years. The benefit is typically paid out as a lump sum to the beneficiaries and can be used to cover expenses such as funeral costs, outstanding debts, and living expenses.
There are several different types of life insurance policies available including term life insurance. Each type of policy has its own set of features, costs, and benefits, and individuals should consider their specific needs and goals when choosing a policy.
Life insurance provides financial protection for your loved ones in the event of your death. Some of the benefits include:
- Death benefit: Your beneficiaries will receive a lump sum of money to help them cover expenses and maintain their standard of living after your death.
- Tax benefits: The benefit is generally tax-free and the premiums you pay on a life insurance policy may be tax-deductible.
- Mortgage protection: Life insurance can help pay off a mortgage or other debts, ensuring that your family is not left with additional financial burdens.
- Investment component: Some life insurance policies include an investment component, such as cash value or dividends, which can grow over time and can be borrowed against or used to pay premiums.
Life insurance can also be used as a savings or investment vehicle with some policies accumulating cash value over time. Additionally, some life insurance policies may also offer additional benefits such as accidental death coverage or long-term care coverage.
Are you looking for life insurance coverage in Kenya today? Talk to a life insurance expert today for more information: Call Faith Kamanga on +254 710 741 491
