Life insurance - PowerPoint by 98w4iY


									 Life Insurance:
What, Why, When?
What is Life Insurance?
• Life Insurance is a way how the main breadwinner
  in a family protects the future of family members
  or other persons who may not have enough money
  to live on if the breadwinner dies.
• Usually people buy Life Insurance to protect their
  children, their wife/husband, a disabled relative
  or elderly parents.
• A sum of money called death benefit is paid by the
  insurance company to the individuals chosen by the
  person who takes out the Life Insurance when
  this person dies.
What is the main benefit of
     Life Insurance?
• The Life Insurance makes
  sure that the family
  members will be able to
  afford and maintain their
  lifestyle, or receive the care
  they had before the death of
  the person who takes out the
  Life Insurance.
Think and discuss…


      Fatal situations
        that might
       occur in life


  Why should one buy a
    Life Insurance?
So that in the case the family breadwinner dies, the
insurance will provide immediate money:
• To pay for a funeral and any other costs
• To pay off loans
• To use child or elderly care services so that the
  surviving husband/wife can go back to work
• To allow the surviving husband/wife to stay at
  home and not work for a while.
Where do you go to buy a
   Life Insurance?

• Insurance companies

• Banks

• On the internet
    Steps to take when
applying for Life Insurance
• You must fill out an application form.

• You may be asked to take
  a medical exam.
How do you pay for the
   Life Insurance?
• When your application is accepted you will be sent a
  Life Insurance Policy (a document with all the
  details which you must keep safe).
• You will also start to pay a small amount of money
  every month.
• This money is called the premium and it is paid by
  the person who buys the insurance to the insurance
• This money is ‘saved’ by the insurance company.
What is the death benefit?
• If the person who buys the Life Insurance Policy
  dies, the family members or other persons
  mentioned in the policy receive a death benefit.

• This money will help them meet their different
  expenses and other financial needs.
  (e.g. pay car or home lean, pay school fees, pay for
  child care or elderly care etc.).

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