Life Insurance

We all worry about our dear family and friends, and try to do everything that we can to promise
their happiness and health.

Life insurance is an agreement between the insurance company and the insured, that grants a
financial payment in kind in case the insured is physically injured, and mainly in the case death.
This financial payment is either given all in one shot, or as a monthly budget. In return for this
insurance, the insured pays either a one time premium, or periodically (usually monthly).

Life insurance protects you from the risk of losing the ability to earn a living, and therefore, the
payment in kind is given to the insured (or to the beneficiaries of his choice) if one of the
following situations occur (the exact description changes according to the type of insurance):

Death
1. The insured reaches the age determined in the policy (usually retiring age)
2. The insured becomes disabled, and therefore cannot work and earn a living.

 

There are three types of Life insurance:

A Risk policy:
a policy where the monthly premium is for insurance in the case of death only,
without the savings component. This policy will not support financially at old age. Among the
Risk policies you can find mortgage life insurance.

A Savings policy:
a policy where the monthly premium is for savings only, without the reference
of the risks of death and/or disability. In case of death or disability, the insured (or his
beneficiaries) will receive the amount that was accumulated in the policy (which actually means
that there isn't a component of insurance here). Up until 2007, the insured in this policy could
withdraw his money when the time comes either all at once, or in monthly payments. From
2008 and on, only monthly payments are allowed.

A Mixed insurance policy:
this is the most popular life insurance, which includes all three risks:
death, disability and old age. It’s actually a mix of the first two policies- it has risk and savings
components. When this insurance is purchased through your job, it’s usually called “directors
insurance”; but it does not have anything to do with directors, and is offered to junior workers
as well.

 

A meeting with one our professional insurance agents will help guide you to choose the most
suitable insurance plan for you.