Life Insurance

Insurance in our life

It is very difficult in this day and age to find time to compare car or life insurance quotes due to the large amount of false advertising in the insurance world. Choose the right insurance policy is the best in our life.=)

Monday, January 5, 2009

Life Insurance

It is very difficult in this day and age to find time to compare car or life insurance quotes due to the large amount of false advertising in the insurance world.

Life insurance or life assurance is a contract between the policy owner and the insurer , where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise.

As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated benefits if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon the lives of the people named in the policy.

Insured events that may be covered include:

  • Serious illness

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.

Life-based contracts tend to fall into two major categories:

  • Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.
  • Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life.

Parties to contract

There is a difference between the insured and the policy owner (policy holder), although the owner and the insured are often the same person.

The policy owner is the guarantee and he or she will be the person who will pay for the policy. The insured is a participant in the contract, but not necessarily a party to it.

The beneficiary receives policy proceeds upon the insured's death. The owner designates the beneficiary, but the beneficiary is not a party to the policy. The owner can change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to any beneficiary changes, policy assignments, or cash value borrowing.

In cases where the policy owner is not the insured, insurance companies have sought to limit policy purchases to those with an "insurable interest" in the CQV. For life insurance policies, close family members and business partners will usually be found to have an insurable interest. The "insurable interest" requirement usually demonstrates that the purchaser will actually suffer some kind of loss if the CQV dies. Such a requirement prevents people from benefiting from the purchase of purely speculative policies on people they expect to die. With no insurable interest requirement, the risk that a purchaser would murder the CQV for insurance proceeds would be great. In at least one case, an insurance company which sold a policy to a purchaser with no insurable interest (who later murdered the CQV for the proceeds), was found liable in court for contributing to the wrongful death of the victim.

Insurance vs. assurance

Outside the US , the specific uses of the terms "insurance" and "assurance" are sometimes confused. In general, in these jurisdictions

"insurance" refers to providing cover for an event that might happen (fire, theft, flood, etc.), while

"assurance" is the provision of cover for an event that is certain to happen.


However, in the United States both forms of coverage are called "insurance", principally due to many companies offering both types of policy, and rather than refer to themselves using both insurance and assurance titles, they instead use just one.

Types of life insurance

Life insurance may be divided into two basic classes – temporary and permanent or following subclasses - term, universal, whole life, variable, variable universal and endowment life insurance.

8 comments:

  1. Happy Wednesday! Bloghoppin' here... Hey, I have an interesting tutorial for you that I have written myself. It is about adding Adsense on your Single Post in XML template. I hope you'll like it! God Bless you!

    ReplyDelete
  2. hi blogger,
    You are right, but there are some other Life Insurance are doing great jobs and some of the Life Insurance Agent
    also well in there services, If you Have any clarification just go on link
    Life Insurance Chennai
    Life Insurance Agent Chennai
    Home Insurance Chennai
    Medical Insurance Chennai

    ReplyDelete
  3. Dear webmaster,

    I am Dorothy Parker. I have visited your website and I would like to congratulate you on building such a valuable online resource. I am sure your visitors find your site as useful as I did.
    My site also has relevant information in the same context, which I am sure your visitors will really appreciate. It would be great if we exchange links with each other. It would boost your search engine rankings, as relevant inbound links is the most important criteria for ranking on most search engines. It would also help bring targeted traffic to your site and reach out to a valuable, relevant audience.

    If you are interested then please revert back to me ASAP. If you are not the concerned person then would request to kindly forward the mail to the respective person.
    Waiting for your quick and positive reply to come.

    Have a great day.

    Thanks and regards
    Dorothy
    Contact:dorothy786@gmail.com

    N.B: -- This message contains personal, privileged, and confidential information and is intended only for the individual named. If you are not the named addressee, you are NOTIFIED not to disseminate, distribute, re-transmit, copy, or utilize this e-mail, and contents herein. Please notify the sender immediately by return email if you have received this e-mail by mistake. You are FURTHER NOTIFIED to delete this e-mail and any attachments, as well as any copies made thereof, from your computer system(s). The sender does not accept liability for any errors or omissions in the contents of this message and unless explicitly stated otherwise, does not intend to give legal advice or enter in an attorney-client relationship.

    ReplyDelete
  4. Awesome post. You have summed up the whole description about life insurance policy type in a very detailed way. Each basic point is explained so well that for a fresher this post will prove to be a jackpot. One can easily have the complete access to all the information about life insurance policy.
    business interruption insurance

    ReplyDelete
  5. Hi, Nice post! Would you please consider adding a link to my website on your page. Please email me back.

    Thanks!

    Harry
    harry.roger10@gmail.com

    ReplyDelete
  6. Cost of Life Insurance Cost of life insurance ultimately depends on many factors including your age, gender, weight, if you’re a smoker, the amount you wish to take out, the period you plan on taking it out for, whether you’re a healthy weight, have an illness (terminal or not) and whether or not you work in a hazardous environment.
    Cost of Life Insurance Cost of life insurance ultimately depends on many factors including your age, gender, weight, if you’re a smoker, the amount you wish to take out, the period you plan on taking it out for, whether you’re a healthy weight, have an illness (terminal or not) and whether or not you work in a hazardous environment.

    ReplyDelete
  7. Cheap womens clothes online store,we offering the latest cheap clothes online,dresses,coats,jeans & skirts with high quality wholesale clothing online, wholesale lots of low price clothing,do not miss the changes.cheap womens clothes online

    ReplyDelete