Your income is vital to the way in which you and your family lives but death could result in them struggling financially. This is where life insurance becomes a crucial tool that is there to provide the protection and comfort you need in a case of a good or bad event. So what do you need to know about life insurance in Pakistan?
Life Insurance – What is It?
Life insurance provides financial protection to your loved ones. If you die during the term of the policy or if you get any permanent disability, it will pay out a lump sum or regular payments to your family. It is a level of cover that is there to protect your family, ensuring that they are still able to live in a financially secure way. There are different types of life insurance known as term insurance or whole of life insurance. These products have further sub categories based on the coverage offerings such as related to financial situations, loss of income, lifelong money savings, critical illness, permanent disability or coverages for Insured’s death. Apart from that, there are also islamic products available in life insurance. For example,
Choosing a Policy that Works for You
As you are aware, there are different types of insurance so you need to choose one that is right for you. Term insurance will enable you to choose how long the policy lasts as well as how much is paid should you die during the policy term. Whole life insurance is in place for the whole of your life and this means that you are always covered until you pass away. If you are a couple, then you will need to decide whether you want separate cover or joint cover.
Is Life Insurance Necessary?
Some home loan providers require you to have life insurance as this protects their investment in you. However, many people take out life insurance to protect their family and those who rely on them from a financial perspective.
How Much Cover Do I Need?
There is no hard or fast rule when it comes to the amount of cover you need although it is suggested that you have around ten times the amount of the annual income of the highest earner in the home. This will provide sufficient cover when it is needed.
What Can Affect the Cost of Cover?
The cost of cover is determined by the type of policy you take out and the amount you are insured for. If you decrease the term life then that will provide a cheaper cover because the amount you are insured for will reduce so that it aligns with your home loan.
The cost can also be affected by your age, health and your sex while extras such as critical illness cover will increase the price as it will protect you from a number of pre-determined diseases.
How to Reduce the Amount You Pay for Life Insurance
You will already be aware that the amount you pay is dependent on a number of things such as the policy and they lifestyle you lead. However, there are ways in which you can reduce the cost of life insurance. This can be done by improving your healthy by giving up smoking or losing weight.
For younger people who are healthy, the most basic of life insurance plans are relatively cheap but for those who are a little older and have health issues then this could increases significantly.
Find the Right Cover for You
The great thing about life insurance is that you do not have to stick to one provider. When reviewing the best life insurance plans for you, you should consider your needs and what cover works best for you and then look for the right provider. Comparing providers will also enable you to find the best life insurance in Pakistan. This will provide you with complete peace of mind because you know that your family will be protected financially should you die and that counts for a lot.
Who Provides Life Insurance Plans in Pakistan
The following are some of the leading life insurance providers in Pakistan. This includes both convenetional and Islamic life insurance covers.
|1||Jubilee Life Insurance||Both conventional and islamic (takaful) life insurance plans are offered|
|2||Adamjee Life||Conventional Individual Life Saving and Investment plans|
|3||TPL Life||Savings & Investment plans|
|4||EFU Life||Various family, savings and investment plans are offered under conventional and Takaful category|
|5||IGI Life||Various family, savings and investment plans are offered under conventional and Takaful categories|
|6||Pak-Qatar Family Takaful||Various family Takaful, savings and investment plans are offered as Islamic protection plans|
|7||State Life||Various individual & family, savings and investment plans are offered as conventional insurance offering|
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