What is life insurance?
Life Insurance provides a payment to your survivors at the time of your death. When a person dies, there are many expenses that need to be paid. These expenses may include such items as funeral costs, burial expense, current bills, and estate taxes. In the case of a premature death, the expenses could also include continuing financial needs of their survivors, such as family living expenses, mortgage payments, long-term debt, and educational expenses. A life insurance policys primary function is to provide for these costs and expenses. The goal, of course, should be to have a sufficient amount of life insurance to cover all of these costs and a reasonable amount left over to offset unforeseen future expenses.
Life insurance can be a resource of funds for your loved ones to meet their needs in the event of your death. You enter into a contract with an insurance company, which promises to provide your beneficiary(ies) with a certain amount of money (the death benefit) upon your death. In return, you make periodic payments, known as premiums. The amount of the premiums generally depends on factors such as your age, gender, occupation, medical history and whether you intend to build up cash value in your policy. Some policies may require a medical exam.
top Life insurance is a contract between an insurance company and the insurance policy owner(s). The insurance company pays a cash amount or death benefit to the beneficiary(s) named in the policy upon the death of the insured named in the policy. Purposes of life insurance include providing financial security, funding business continuation and satisfying estate tax requirements among others. The two main types of life insurance policies are term life insurance and permanent life insurance.
Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured’s named beneficiary so long as the insured’s premiums are current. People take out life insurance policies for a number of reasons. Such insurance provides security to family members upon the loss of a loved one. For instance, if the primary wage earner dies in his or her prime, the death benefit received from a life insurance policy will assist the surviving family members in overcoming the burden of the tragic loss. Life insurance can be purchased by individuals, but is also offered as a perk by many employers. Often times, large employers and government employers offer group life insurance at no cost to the employee. Should the employee wish to obtain additional life insurance fr
