| All About Life Insurance |
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| Written by Jeff Cline |
| Thursday, 03 June 2010 12:13 |
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There are many kinds of insurance policies that can be purchased by people. Of these a Life Insurance policy is the one which covers a person for his or her entire life.
There are many kinds of insurance policies that can be purchased by people. Of these a Life Insurance policy is the one which covers a person for his or her entire life. According to this agreement, the insurance company agrees to pay a specific sum of money after the death of the person who is being insured. In return the person who purchases life insurance plan pays a premium at regular intervals of time. Insurance companies pay the agreed sum of money only if the death of the policy holder takes place as per the insured events that have been specified in the contract. The most commonly stated insured event in life policy contracts is serious illness. Many types of life insurance plans are available for people these days. A feasible plan can be selected by a person according to his needs and requirements and after comparing the various types of insurance plans. A term life insurance plan is the most commonly used life plan that is opted for by many people. Also known as a temporary life policy, this plan covers the life of the insured person for a specified period of time. This period may be 5 years, 10 years or even 20 years. During the term of the policy, if the person insured dies, the insurance company pays the sum of money to people who have been named as beneficiaries in the contract. On the other hand, if the term of the policy ends and the policy is not renewed, the beneficiaries are not paid any cash benefits. Another type of a life policy is the whole life policy which covers the insured person for his entire life. According to this policy, when the insured person dies, a certain sum of money is paid to the beneficiaries named in the contract. The premium for term life policy stays the same as the value of this policy is divided over many years. In this life insurance plan, cash benefits accrue over a period of time and are paid in lump sum. Universal life insurance plan is the one which covers a person till his or her death. In universal insurance plans, the insurance amount is divided into death benefit and accrued cash. In this case, cash can be withdrawn as soon as cash value gets accumulated and so cash is not paid in a lump sum. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Looking to find the best deal on Auto Insurance, then us to find the best advice on Auto Insurance for you. |