Everyone wants a secure life, some people want to store their money or want to invest their money in a secure place that will help them in the future. One of the best ways to secure your money is to invest in ensuring that will help you in the future a lot.
In order to do so, you need to buy an insurance policy in Pakistan but before buying any policy, you need to find some of the factors that why you need it, which insurance type can be the best for you, from whom you need to buy insurance policy in Pakistan, etc.
What is life insurance?
Life insurance is a contract between an insurance company and insurance policy holders that ensure policy holders to give payment of death benefits. This money will give to the family of policy holder when the policy holder dies.
The insurance company promise a death benefits in exchange for a premium paid by the policyholder. The insurance is a legal contract in Pakistan and when the policy holder dies then the amount of insurance will give to the name beneficiaries like children, parents, wife, spouse, etc.
Types of insurance plan in Pakistan:
There are two types of insurance plans in Pakistan:
- Term Life Insurance
- Whole Life Insurance
Term Life Insurance:
Term life insurance is the insurance that guarantee for the death benefits. When the insured person dies in the specified period of insurance then his family will get the benefits from insurance. The specified time period is of 10 years. If the policy holder dies in the specified period then the death benefits will transfer to their family but if he remains alive after the specified period then the they will not get the death benefits.
Whole Life Insurance:
The whole life insurance is the type of insurance that will remain in force in the life of policy holder but it is available premium and need to paid regularly. In this type of insurance, the insurance company will pay all the death benefits and face the values of beneficiaries after the death of policy holders. Whole life insurance is quite high as compare to the term life insurance.
How to choose the best life insurance?
You need to follow the following instructions in order to choose the best life insurance.
Check why you need insurance:
It is one of the most important things that you need to decide that you need a insurance or not. When you need insurance then you need to think that why you need to get the insurance. The life insurance policy will help you a lot and your family, you need to think about it.
Find out the type of plan you need:
You also need to determine the type of plan you need. Because there are a lot of plans available depends on the company you are choosing. If you ensured yourself then it will provide your family a good amount of money after your death that will help your family financially. It’s better to secure yourself and your family after death.
Select the insurance policy:
Before selecting the policy, you need to find the following answers:
- Can we convert term life policy to whole life policy?
- If yes then how?
- Can we extend or renew the insurance policy?
- Are they providing quality service and guarantee on premium policies?
- Can we get the length of service according to our demand?
These are some of the questions you need to follow before selecting any insurance company as each company has different terms & conditions and make sure that you have chosen the reliable company.
Best insurance companies in Pakistan:
- Jubilee life insurance
- State life insurance
- Pak Qatar Takaful
- Alfalah Insurance
- Adamjee Insurance Company
- EFU Life Insurance