Life Insurance Policies - Get the Quick and Dirty Crash Course to Life Insurance
Saturday, February 2nd, 2008What is a life insurance policy?
A life insurance policy is a contract between an insurance company and a policy holder (insured) to pay out an agreed amount to the insured s beneficiaries (usually family) upon the death of the policy holder. The policy holder agrees to pay premiums as calculated by the insurance company.
Life insurance policies are purchased to protect the surviving family members 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 Policy:
Permanent policies are more expensive and complicated than the term policy. Permanent insurance remains in effect for the policy holder s lifetime (as long as the premiums are paid as agreed by the policy terms and conditions). In addition to paying out death benefits, it provides investment opportunities. A permanent policy s value increases over time and the insured may borrow against the acc (more...)
