Life Insurance is a legal agreement that takes the form of an insurance contract between an insurer and an individual or family. A Life Cover contract is also a financial contract that arranges for the paid payment of cash (in the form of a Life Insurance policy) following the death of the insured person or at the end of an agreed period. This Life Cover safeguards the future of your family by paying out a fixed sum in the event of an unlucky accident. It is very important to get the right cover for you and your family as it can prove to be extremely helpful during unfortunate times. An individual can buy his or her own Life Insurance policy or choose to take up a policy that is tailor made for him or her.

It is very important that you get the correct life cover because the cost of this protection can vary greatly depending on various factors such as the age and health of the individual, his or her dependents and his or her lifestyle. Life Insurance is one of the most important investments that anyone can make in order to secure the future of his or her family. In order to buy a life cover, you need to be aware of the benefits and features of life assurance policies. Some of the most important aspects that you should be looking for while buying a life cover are as follows:

The Funeral Cover: A life cover is essential when planning for a loved one’s funeral. It acts as an extra financial support which allows you to have piece of mind while paying for the funeral of your loved one. If you have a good understanding of how much funeral fees can be, you will be able to estimate how much money you would like to have saved during the funeral. A Life Insurance company will usually be happy to offer you a quote on how much money you would be able to save should your loved one pass away, so do not hesitate to ask for one from them.

The lump sum payment: If you have already budgeted for the funeral, then it is likely that the cost of the funeral cover will be covered by the budget. It is however advisable to have a lump sum monetary payment included in the cover policy should you feel that you could afford to pay for the entire funeral cover at one go. The life insurance company pays the lump sum upon your death. However, you should make sure that you are comfortable with the amount and that you are willing to live for the agreed amount rather than overstretch your budget.

The decreasing term assurance: Many people go for this type of cover since they fear that they will be unable to pay the lump sum due to a sudden unexpected demise. The decreasing term assurance contract has a fixed sum of money which periodically decreases each year. This means that even if you should die earlier in the year, you will still be able to receive the lump sum. While this is more expensive than the standard life cover, there is always the chance that you may not need the insurance for a very long time.

The level term assurance: If you have a fixed income, you can opt for this option, but you will only receive a lump sum. However, the policy will provide coverage on a monthly basis. The benefit of such a plan is that you get to set aside money every month which you will use for your funeral costs. As such, there is no need for a lump sum payment. There are many people who opt for these main types of life insurance. They also like the fact that there is no investment component involved.

The life insurance cover designed to cover funeral expenses is called critical illness cover. It is the most expensive type of life insurance cover since it pays the funeral costs of those who have a critical illness. However, many people like this cover since the payment they will receive upon death is much higher than any other policies. For example, the average payment for those with critical illness is about three times that of the average policy holder. However, many people still prefer the more affordable critical illness cover over the more expensive life insurance cover.

The whole life policy term: This type of insurance will last your entire life. Once the policy term has expired, your beneficiaries will receive a fixed amount. This amount can either be paid monthly or upon your death. However, you can also choose to make extra payments so as to increase the payout. You can also borrow against the cash value of your policy term. You should do a lot of research before you decide on this one.