A Quick Guide to Life Insurance
Life assurance or life insurance is a legal contract between an insurer or insured and an insurance policy holder. In this contract the insurer promises to pay a stipulated or designated beneficiary a sum of money in exchange of the premiums upon the death of the insured party. Who is repeatedly the policy holder. Depending on the contract terms and conditions other unanticipated events like critical illness or terminal illness may frequently facilitate the payment of the insured party The insured or the policy holder typically, generally pay premium either once as lump sum or on a regular basis. Customarily other expenses for instance the funeral expense can also be included in the doles.
policies are legal contracts that often have their rules and regulations, at times the policies often have restrictions of their own and to their holders, the life insurance or alternatively the life assurance policy is not any different to all those other legal policies, this is evident because it always has its own terms and conditions or if you like its own restriction that most commonly dictates the actions and the doing of the insured. For the purposes of trying to limit the liability of the insured or the policy holder there are always a number of specified exemptions or rather specified exclusions that are often into the contract to help categorically prevent the insured from being extra liable. These specific exclusions may comprise of the claims relating to suicide, war, fraud, riot, and civil commotions. Life assurance can be categorized into two broad classification. Firstly we have the investments policies; the main aim of these policies is to trigger the growth of capital by single or regular premium, the examples may include the whole life, the universal life and the variable life policies.
Secondly we have the protection policy, this policy is often designed to provide benefits, thy are typically lump sum payments in the event of occurrence. The life insurance premiums are often based on a number of considerations. Age is an important factor to consider while choosing the type of policy to enter in. Younger people often has a pool of choices to select from since most of the insurance companies are have age limits.
Basically the female are seen to have the upper hand when it comes to the number of years they live, this often translates to the policies being less expensive for the female. Policies often require physical test before getting down to business, the healthier the individual the less expensive the premium to be paid are going to be.
The duration of need is also an important factor that ought not to be forgotten.