Everybody knows what the ultimate purpose of life insurance is, but not many people in Bangladesh understand how exactly the coverage of a life insurance policy works.
Common queries regarding life insurance policies
How does life insurance work? What benefits will I get from my life policy with MetLife? What is life insurance?
Understanding how insurance works
Although the idea of protection behind life insurance is very obvious to the people of Bangladesh, the investment options and the possibility of creating wealth are not clear to everyone. Understanding the concept behind life insurance and how life insurance policy works can help to protect your family with wealth management and creation.
The basics of life insurance
The basic concept is fairly easy to understand. A number of people pay regularly into one account. All these people want to secure the financial future of their family and dependents (the beneficiaries) in case of their own death. Should any of these people die, the money in the communal fund will be used for payouts of this person’s beneficiary. The insurance company can then invest the rest of the amount in order to grow these funds and offer payouts to its customers.
Life insurance is a way of long-term financial planning. It helps an individual to protect one’s family financially, dependents or any other beneficiary in case of his/her own death. Knowing that smaller regular contributions can result in a bigger payout through long-term planning, one understands the potential and power this contribution can have.