Life=Insurance=and=Companies

Life=insurance=is=a=contract=between=an=insurer=and=a=policy=owner.A=life=insurance=policy=guarantees=the=insurer=pays=a=sum=of=money=to=named=beneficiaries=when=the=insured=dies=in=exchange=for=the=premiums=paid=by=the=policyholder=during=their=lifetime.
For=the=contract=to=be=enforceable,=the=life=insurance=application=must=accurately=disclose=the=insured’s=past=and=current=health=conditions=and=high-risk=activities.

Life=insurance=is=a=legally=binding=contract=that=pays=a=death=benefit=to=the=policy=owner=when=the=insured=dies.
For=a=life=insurance=policy=to=remain=in=force,=the=policyholder=must=pay=a=single=premium=up=front=or=pay=regular=premiums=over=time.
When=the=insured=dies,=the=policy’s=named=beneficiaries=will=receive=the=policy’s=face=value,=or=death=benefit.

Term=life=insurance=policies=expire=after=a=certain=number=of=years.=Permanent=life=insurance=policies=remain=active=until=the=insured=dies,=stops=paying=premiums,=or=surrenders=the=policy.
A life insurance policy is only as good as the financial strength of the company that issues it. State guaranty funds may pay claims if the issuer can’t.
Many=different=types=of=life=insurance=are=available=to=meet=all=sorts=of=needs=and=preferences=Depending=on=the=short- or=long-term=needs=of=th=person=to=be=insured,=the=major=choice=of=whether=to=select=temporary=or=permanent=life=insurance=is=important=to=consider.

Term=life=insurance=lasts=a=certain=number=of=years,=then=ends.=You=choose=the=term=when=you=take=out=the=policy.=Common=terms=are=10, 20, or=30 years. The=best=term=life=insurance=policies=balance=affordability=with=long-term=financial=strength.
Decreasing=Term=Life=Insurance—decreasing=term=is=renewable=term=life=insurance=with=coverage=decreasing=over=the=life=of=the=policy=at=a=predetermined=rate.
Convertible Term Life Insurance—convertible term life insurance allows policyholders to convert a term policy to permanent insurance.
Renewable Term Life Insurance—is a yearly renewable term life policy that provides a quote for the year the policy is purchased. Premiums increase annually and is usually the least expensive term insurance in the beginning.

Permanent=life=insurance=stays=in=force=for=the=insured’s=entire=life=unless=the=policyholder=stops=paying=the=premiums=or=surrenders=the=policy.=It’s=typically=more=expensive=than=term.
Whole=Life—whole=life=insurance=is=a=type=of=permanent=life=insurance=that=accumulates=cash=value=Cash=value=life=insurance=allows=the=policyholder=to=use=the=cash=value=for=many=purposes,=such as=a=source=of=loans=or=cash=or=to=pay=policy=premiums.
Universal=Life—a=type=of=permanent=life=insurance=with=a=cash=value=component=that=earns=interest,=universal=life=features=flexible=premiums.=Unlike=term=and=whole=life=the-premiums-can=be=adjusted=over=time=and=can=be=designed=with=a=level=death=benefit=or=an=increasing=death=benefit.
Indexed=Universal—this=is=a=type=of=universal=life=insurance=that=lets=the=policyholder=earn=a=fixed=or=equity-indexed=rate=of=return=on=the=cash=value=component.
Variable=Universal—with=variable=universal=life=insurance=the=policyholder=is=allowed=to=invest=the=policy’s=cash=value=in an=available=separate=account. It=also=has=flexible=premiums=and=can=be=designed=with=a=level=death=benefit=or=an=increasing=death=benefit.

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