What is life Insurance ? What is life Insurance ?Life insurance is an agreement between life insurance coverage company (the insurer) and policy's owner
(insured person) underneath the terms of a life insurance contract.Anything is in consideration
of certain payments (known as the premium) to be designed to the insurer in both a lump sum or in
any other periodical payments.The insurer promises to pay a certain sum to some designated beneficiary
when insured person die, in return for your premium payments,this is actually the basic principle behind
all life insurance contracts.
Life insurance may be the financial resource of an individual’s family during the happiest moments
of his or her life but during unhappy moments as well.
In human life death is Uncertainty,so having family means dependants, which means financial
commitments.What would happen if you were to lose your life suddenly or become disabled and
cannot earn.In cases like this Life insurance gives some form of protection against the financial
loss and provides guarantees that your dependants can continue living without financial
hazards even just in case of your demise.
What is life Insurance ?There are several kinds of policies that may be available,some major types are
1 Term Life Insurance:
Term life insurance provides protection for a specified number of years. A death benefit is
paid to the beneficiary if the insured dies within the time while the policy is in force.
2 Permanent life insurance or Whole life insurance :
Permanent life insurance coverage designed to provide protection for life.Permanent life
insurance coverage is generally designed to have a level premium.
3 Universal Life Insurance:
Universal life insurance policies differ from whole life insurance policies for the reason that they
offer some flexibility to change the premium payments and death benefit. Despite the fact that premium
payments are flexible, a minimum premium is required to keep the life insurance protection
in effect.
What is life Insurance ?