What is a life insurance policy?
Life insurance is a contract between an insurance company and the policy holder (insured) from one agreed to pay the amount of the insured beneficiaries (generally family) after the death of the policyholder. The policyholder agrees to pay calculated premiums from the insurance company.
Life insurance policies are purchased and to protect the remaining members of the family from the loss of income that would occur as a result of the death of a family member.
There are two types of life insurance policies, permanent and term.
Permanent insurance:
Permanent policies are expensive and complicated than long-term policy. Permanent insurance remains effective for policyholders life (as long as the premiums be paid, as the policy agreed terms and conditions). It provides in addition to the payment of death benefits, investment opportunities. A persistent policy can borrow against the accumulated value of the policy value increases with the passage of time and the insured person. This increase of cash value is deferred, tax until the money is drawn.
There are three types of permanent life insurance.
All: Whole life policies are traditional permanent insurance incurred cash value in the course of time. The most whole life insurance to pay dividends to the policyholder.
Universal: Universal life insurance policies are more flexible than the other permanent directives. It allows the policyholder, the amount of insurance and premiums to change, such as financial needs (subject to the insurance company of underwriting terms and conditions) change.
Variable: With variable life insurance death benefit and the value of the policy based on the performance of a separate investment funds. The most guidelines guarantee that the payment of death not below a certain minimum will fall, however, the present value of the policy is generally not guaranteed. There are more risk with variable policy involved.
Term insurance:
Term is the simplest and cheapest form of life insurance. The long-term policy remains in force for a certain period of time. The term can be anywhere 1 to 30 years. It is a set of premium and a pay-set death benefit amount. Expires the directive before the death of the insured, the insured can either renew the policy for a specified period of time, or let it expire.
The way to convert to a persistent policy is term policies. Sometimes possibly an insured not more expensive permanent life policy first of all can afford. As they more established improve themselves and their careers and their financial situation, you can decide to update your term to a permanent life insurance. The upgrade requires none of the policyholder are subject to an additional physical examination.
The underwriting guidelines for the various insurance companies are different, so look around and do your homework before buying a life insurance policy.
They show our recommended source for insurance quotes is the low rate insurance quotes of all kinds offers a simple page. Life insurance quote, Car insurance quote
No comments:
Post a Comment