Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person. Here are some key points about life insurance:
- Life insurance may be divided into two basic classes: temporary and permanent; or the following subclasses: term, universal, whole life, and endowment life insurance.
- Individual proof of insurability is not normally a consideration in group life insurance, which is term insurance covering a group of people, usually employees of a company, members of a union or association, or members of a pension or superannuation fund.
- For a life insurance policy to remain in force, the policyholder must pay a single premium upfront or pay regular premiums over time.
- Life insurance provides financial support to surviving dependents or other beneficiaries after the death of an insured policyholder.
- There are several different types of policies, but there are two basic broad categories of life insurance: term life and whole life.
- The best choice for you depends on your needs. It may even be a combination of products.
- Life insurance works by providing a financial safety net for loved ones if you pass away. In exchange for your premium payments, the life insurance company will pay a lump sum known as a death benefit to your beneficiaries after your death, as long as your policy is in force.
- Financial protection and peace of mind are at the forefront of life insurance. The best life insurance companies offer coverage options that help you ensure your loved ones will be financially taken care of if you die.
In summary, life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person. It provides financial support to surviving dependents or other beneficiaries after the death of an insured policyholder. There are several different types of policies, but there are two basic broad categories of life insurance: term life and whole life. The best choice for you depends on your needs. It may even be a combination of products.
