Life Insurance – Benefits and How to Apply for Life a Insurance Policy

Life Insurance is a contract between an insurance policy holder (the insured) and an insurance company (the insurer), where the insurer promises to compensate the insured a sum of money in exchange for a premium upon the death of an insured person or after an agreed period.

Life Insurance is a contract between you and the insurance company that allows the insurer to pay your beneficiary a lump sum of money or periodically, known as death benefits to your beneficiary after your death.

Please keep reading to learn more about life insurance and what it entails.

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Life Insurance

Life Insurance or Life assurance is most commonly known in most Commonwealth nations as an insurance policy between the insurance company and the insured, where the insurer agrees to pay the stated beneficiary by the insured a lump sum of money upon the death of the insured person.

A life insurance policy ensures that the insurer pays a sum to one or more mentioned beneficiaries when the insured person dies in exchange for premiums paid by the policyholder during their lifetime.

Types of Life Insurance

Below are some of the types of life insurance;

  • Term life insurance.
  • Whole life insurance.
  • Universal life insurance.
  • Group life insurance.
  • Final expenses Insurance.
  • Retirement insurance.

These are some of the types of life insurance.

Life Insurance

Benefits of Life Insurance

Below are some of the importance of choosing life insurance;

  • Wealth creation: Life Insurance enables you to be financially prepared for your future needs because it allows you to invest and grow your money for future needs.
  • Financial security: The proceeds from your life insurance contract, which will be paid to your beneficiary, can serve as financial leverage to cover their day-to-day financial needs in the future.
  • It pays for the funeral and final expenses cost of the insured.

Life Insurance also covers living benefits like your medical bills if diagnosed with a terminal illness and medical bills if you develop a chronic or critical illness.

Factors That Affect Life Insurance

Below are some of the factors that generally affect Life Insurance;

  • Age.
  • Gender.
  • The coverage amount you choose.
  • Health and medical history.
  • The type of life insurance you choose

These are factors that affect life insurance.

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What Does Life Insurance Cover?

Generally, it should be noted that life insurance covers all causes of death, but it does not cover suicide within the early stage of the contract, like two years of the contract. Below are some cases life insurance covers;

  • Old age.
  • War or terrorism.
  • Illness.
  • Heart attack or diseases.
  • Accidents such as car accidents.

Above are some cases life insurance covers.

Top Life Insurance Companies

Below are some of the top life Insurance companies you can register with;

  • State farm.
  • Allianz.
  • MetLife.
  • China Life.
  • AXA.
  • Lincoln Financial.
  • New York life.
  • Pacific Life

Listed above are some top-rated life insurance companies.

How to Apply for Life a Insurance Policy

To apply for life insurance, follow these general guidelines below:

  • Understand what life insurance covers and decide how much coverage you need.
  • Pick a life insurance policy type, as there are two major types of life insurance and the benefits they cover.
  • Research different life insurance providers to find the one that appeals to you and the coverage types they offer. Some top-rated companies that offer life insurance include AXA, Allianz, State Farm, MetLife, etc.
  • Request and compare life insurance quotes once you have a list of like insurance companies. You can shop for quotes online by visiting their official websites.
  • After comparing quotes and choosing an insurance provider, apply by filling out the application.
  • Prepare for your phone interview, as the insurance company might require a secondary one.
  • Schedule a life insurance medical exam, as many life insurance providers and policy types require candidates to get a physical exam before getting approved for coverage.

After the successful completion of the application process, your job is done. Then, you wait for approval.

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Frequently Asked Questions

Below are some of the frequently asked questions.

How Many Beneficiaries Can Be on My Life Insurance Policy?

There is no limit to the number of beneficiaries to put on your policy, but it’s advisable to put a reliable person who can claim it when you die.

 Is Life Insurance Really Worth Applying For?

Yes, life insurance is an excellent insurance policy to apply for because it provides financial freedom to you and your beneficiaries.

How Does a Life Insurance Payout Work?

A life insurance payout only works when the beneficiary files a claim with the insurance company, including the life insurance policy documents and the death certificate when the insured person must have died.


Life insurance is an essential financial tool that can provide financial security for your loved ones during your death. Different types of life insurance are available, and it’s essential to choose the right type of policy for your needs.

It’s also very important to consider the policy’s cost, the coverage length, and the company you are purchasing from. Life insurance can provide peace of mind, and it’s worth finding the right policy for you and your family.