How important is life insurance and security for you?

Is life insurance and security important for you? When people hear or read the words “life insurance”, the first thing that comes to their mind is paying monthly or quarterly contributions or  a specific amount of premiums for a certain period of time, in order to get the benefit or compensation just in case any serious illness, accident, or death occurs. Life Insurance is more of an assurance that even in the event that the policy owner or the insured person is unable to work, he would still get a certain amount of money either on monthly basis or lump sum.

Life insurance is still a vague thing for some people. Some are even whether they should buy their own or if they can buy their wives or husbands’ life insurance. People who do not have an idea about how life insurance policy works, often get confused with the difference between the individual who is insured and the policy owner or policy holder. Often, the insured person and the owner or life insurance policy holder are often the same individual.  Let’s say for instance, my friend Lio decides to get a life insurance policy on his own life,  in that case, Lio is both the the insured individual and the policy holder. But if his mother was the one who bought the life insurance policy for Lio, his mother is the policy holder, and Lio is the insured person. Just in case something will happen to Lio, his mother will be able to claim the amount stated on the contract of his life insurance. The policy owner  or holder is the person who is responsible in paying for the life insurance policy. The insured  person in this case, who is Lio, is simply a participant in the said life insurance contract.

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