Can i withdraw money from life insurance policy?

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Can i withdraw money from life insurance policy

Life insurance is a type of insurance that covers the life of the insured. The death of an insured person results in the obligation for the insurance company to pay benefits to the beneficiaries. This insurance can be concluded for a specified period of time or for life. The most common are fixed-term insurance (so-called term insurance), for which insurance protection is provided at a specific time, e.g. for 30 years – from 28 to 58 years of age. Can I withdraw money from life insurance policy?

Life insurance policy

Life insurance works in a very simple way – the insured undertakes to pay the premium for a certain period of time, and the compensation is to be its multiple. The amount of the sum insured depends on the client – his individual financial possibilities, life situation and it affects the amount of the monthly premium.

The price of the policy is also affected by the scope of protection. A cheaper solution will be the basic offer that protects the life of the insured, but with this insurance you can’t count on help during cancer, arm or leg fracture, stroke or car accident.

There are really many situations in which the insured should be paid compensation. It is therefore good to familiarize yourself with the available offers to receive satisfactory policy compensation when a difficult period in your life arrives.           

A life insurance policy does not only have to protect but can increase our savings. This will happen when the insured chooses the savings policy option or decides to multiply funds under the investment in the Insurance Capital Fund. This means that part of the premium will be allocated to investments that will increase savings over the years.

Can i withdraw money from life insurance policy
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Can I withdraw money from a life insurance policy? 

You can withdraw money from your life insurance depending on the contract you choose. It will be best if you do it when your contract is over. Thanks to this you will receive the full amount you have insured for.

Depending on the type of life insurance and insurer you have, usually two or three years from the date of commencement of insurance, you can buy the policy in whole or in part. We then receive the so-called the surrender value, i.e. the amount that the company undertakes to pay in the event of cancellation before the contract termination date. However, we do not get the total value of premiums paid, but the sum much lower. Let’s remember that the society provided protection during the period of paying the premiums, and for that it should be paid. The earlier you do this, the lower the amount will be. In addition, this will close your contract, which means you will no longer have insurance. 

Compare offers before buying

Before buying life insurance, it is extremely important to compare offers. By comparing insurance offers, however, we can learn that a competitive company has similar capabilities, but at a more affordable price. To quickly and reliably compare several offers with each other, it’s best to use the insurance comparison website.

 

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