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Life Insurance Policies – Ins and outs

 

With the so many uncertainties in life,Everyone needs to find a way of ensuring that they have their lives well secured. We never know when a tragedy like death or an illness might strike.

Is life insurance cover a necessity ?

When death comes, it might be of a spouse or a father who is the breadwinner of a family and when this happens, it means that the family is left with no one to cater for their basic needs. That is why it is very very important to have a life insurance cover policy that will ensure security for the future.

life insurance policy

At the work place, we have employers getting relevant life insurance policies for their employees. They ensure that these policies are well explained before any agreements are made. We have different insurance companies that deal with different insurance services eg cars, businesses, health and many others.

This article will look at life insurance policies. Life insurance policies are simply contracts signed by an individual and an insurer with the individual agreeing to be paying an agreed amount of money to the insurer either annually or at a lump sum. The insurer on the other hand agrees to pay the benefits to the beneficiary just in case the insurer dies or is stricken by a terminal illness and are no longer in their healthy state. The beneficiary is chosen by the insurer, it can either be a spouse, children, brothers or sisters, grandchildren etc.

Employer / Eemployee Life insurance

When an employer decides to offer insurance to his or her employers, they go for the life policies insurance. This is where we have the employer subscribing to an insurance company on their behalf and he pays the premiums to the insurance company. The employer has the money used to pay the premiums deducted from their salaries but these money is not counted or considered to be benefits and these premiums do not determine employers annual allowances.

When an employer decides to go for the life policy, they should have all the relevant life policies well explained to them before going ahead with the venture.

One thing they will need to know is that A Relevant Life Policy will not in any way benefit or profit them just in case their employee dies. Some employers can decide to insure their workers with the misconception that this will in a way bring a personal profit to them. This is however not the case because in the contract, the employee has beneficiaries listed down and so there is no chance of them getting the benefits. Another important thing they should know is that this policy is only available to their employees and cannot be extended to their family members, if they need to insure them, they will need to go for a different life insurance policy. The employer needs to play a role also in ensuring that the scheme succeeds by for example ensuring that the benefited fall into the right hands when death strikes.

They should also provide tax efficient benefits on death to make sure the beneficiaries do not end up paying half of their benefits to the tax collectors. However, there are circumstances where the policies cannot be used. Such are for example when the cause of death is not death or a terminal illness, there can be no benefits e.g. if the beneficiary who is the employee commits suicide, they will not get any benefits. In such a case, the policy is declared null and void Another is when one is not an employee of the insurer or is beyond employment age which is 75years old.

A life policy has benefits to both the employer and the employee e.g. to the employee, it assures them that when they die, their families will not be left to suffer or live in poverty because they are insured. A gain they are guaranteed of having their hospital bills catered for just in case they get some terminal illness. Last but not least, they have the advantage of choosing a beneficiary or beneficiaries of their choice. For The employer one of the most important benefit is that they will pay for the premiums with friendly tax deductions which will guarantee them of not getting losses at the cost of insuring their employees.

After having the Relevant Life Policies Explained. It is upto the employer to go ahead and get their employees insured.

Guest post by youell for relevantlifepolicyinsurance.co.uk

 
 
 

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