Definition of life insurance
Learn how life insurance works and what you need to know to choose your coverage.
Life insurance is a contract with an insurance company. In exchange for payment (fee), gives the insurance company a lump sum, known as a death benefit, the beneficiary if the insured dies.
Life insurance is a contract with an insurance company. In exchange for payment (fee), gives the insurance company a lump sum, known as a death benefit, the beneficiary if the insured dies.
Sure has two
important purposes: (1) to replace the income insurance if he or she dies, and (2) insurance to qualify for favorable tax treatment.
Owner purchase insurance
coverage from an insurance company to pay the specified amount of evidence (pay) policies
long (or life time).
If the insured dies before the term is
completed, the insured amount (face
amount of the policy) is paid to one
or more named beneficiaries.
If the insured survives the expression,
then, depending on top of the kind of rule, he or
she can get all or part of the face amount of the policy.
For a
young family, life insurance creates an "instant estate" before they have enough time to gather other
assets. And provides liquidity
named beneficiary (or beneficiaries) for a long time before the deceased estate
(often called the most expensive)
have settled. The main types of life
insurance policies are:
(1) the term life insurance,
(2) Whole life insurance,
(3) policies Endowment life insurance, and
(4) annuities. Life insurance has its origin in the ancient practice of saving money for their own funeral expenses, and also called a guaranteed lifetime.