Insurance is a transfer of risk. Life insurance policy means a written document which says a payment of money is made on death but not one which says payment is made only if the death is accidental or if death happens in certain circumstances or during the period a person has agreed to pay premiums. A life insurance policy is a legally binding contract between an individual and insurer (insurance company) in which the individual transfers some or all of his or her human life value to the insurance company.Life insurance policy is the insurer (insurance company) is the entity that will decide if the insured individual is worth the risk of paying out a death benefit upon the insured's death. The death benefit is the amount of insurance the insurer is required to pay upon the person's death. The insured pays premiums on a monthly, semiannual or annual basis for the insurance. Depending on the type of life insurance, the life insurance policy may last 10, 15 or 20 years, or even for the entire life of the insured, no matter how long he or she lives.
Trying to purchase the best life insurance policies can be confusing. Since each person's situation is different, careful research will help in making the right decision.
Different insurance company can introduce different kinds of life insurance policies. The choice between whole of life insurance policies, term life insurance or any of the other options available is not about which one is better or worse than the other. Each has its place. By doing a proper financial needs analysis, life insurance applicants will have a far more accurate idea of exactly how much life insurance to purchase, in what areas and how much they can afford to spend. Another option is to mix and match the various options to better fit in with one's needs.
In simplest definition, a life insurance policy, for which premium payments have been paid as agreed upon according to the terms of the contract, pays out to your beneficiary upon your death the value of the policy. From your viewpoint, the biggest advantage to carrying a life insurance policy is peace of mind knowing that in case of your untimely demise, your nearest and dearest will be clothed, shod, fed and educated so they can make their way in an uncertain world with at least a minimal financial buffer to protect them. From their viewpoint, in your absence, they will have the means to make any necessary adjustments with somewhat less misery than if they would if not provided for.
Trying to purchase the best life insurance policies can be confusing. Since each person's situation is different, careful research will help in making the right decision.
Different insurance company can introduce different kinds of life insurance policies. The choice between whole of life insurance policies, term life insurance or any of the other options available is not about which one is better or worse than the other. Each has its place. By doing a proper financial needs analysis, life insurance applicants will have a far more accurate idea of exactly how much life insurance to purchase, in what areas and how much they can afford to spend. Another option is to mix and match the various options to better fit in with one's needs.
In simplest definition, a life insurance policy, for which premium payments have been paid as agreed upon according to the terms of the contract, pays out to your beneficiary upon your death the value of the policy. From your viewpoint, the biggest advantage to carrying a life insurance policy is peace of mind knowing that in case of your untimely demise, your nearest and dearest will be clothed, shod, fed and educated so they can make their way in an uncertain world with at least a minimal financial buffer to protect them. From their viewpoint, in your absence, they will have the means to make any necessary adjustments with somewhat less misery than if they would if not provided for.
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