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You are an asset, insure your life


If the living condition of your dependents will decline following your demise, then you need life insurance because you are an asset.

If you desire that your dependents maintain a certain living standard even in your absence, then life insurance is basic.


Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The insurance company promises a death benefit in consideration of the payment of premium by the insured.

Purpose of life insurance
The purpose of life insurance is to provide financial protection to surviving dependants after the death of an insured. It is essential for applicants to analyze their financial situation and determine the standard of living needed for their surviving dependants before purchasing a life insurance policy.

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Life insurance agents or brokers are instrumental in assessing needs and establishing the type of life insurance most suitable to address those needs.

Several life insurance channels are available including whole life, term life, universal life, policies etc. It is prudent to re-evaluate life insurance needs annually, or after significant life events like marriage, divorce, the birth or adoption of a child, and major purchases, like a house.

Major components of a life insurance policy.

Death benefit
Death benefit is the amount of money the insurance company guarantees to the beneficiaries identified in the policy upon the death of the insured. The insured will choose their desired death benefit amount based on estimated future needs of surviving heirs.

The insurance company will determine whether there is an insurable interest and if the insured qualifies for the coverage based on the company’s underwriting requirements.

Premium payments are set using actuarially based statistics. The insurer will determine the cost of insurance (CoI), or the amount required to cover mortality costs, administrative fees, and other policy maintenance fees.

Other factors that influence the premium are the insured’s age, medical history, occupational hazards, and personal risk propensity. The insurer will remain obligated to pay the death benefit if premiums are submitted as required. With term policies, the premium amount includes the CoI. For permanent or universal policies, the premium amount consists of the CoI and a cash value amount.

Cash value of permanent or universal life insurance is a component which serves two purposes. It is a savings account, which can be used by the policyholder, during the life of the insured, with cash accumulated on a tax-deferred basis. Some policies may have restrictions on withdrawals depending on the use of the money withdrawn.

The second purpose of the cash value is to offset the rising cost or to provide insurance as the insured ages.

FG’s $1.8m daily on feeding of school children (1)


If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance.

You got insurance on your car, but no life insurance for your family?

Unless you are immortal, you need life insurance.

7 in 10 families with kids under 18 would have trouble paying their bills if their primary wage-earner died.

People are more concerned with paying their mortgage or rent than purchasing life insurance. But how would those bills get paid if you were no longer around?

FG’s $1.8m daily on feeding of school children (1)

Millions don’t have any life insurance. That’s not a crowd you want to be a part of.

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