What is life insurance?

Life insurance is a form of insurance that pays cash revenues after the insured's death on the basis of policy. In principle, the life insurance policy is a contract between the insured and insurance company in which the insurance company agrees to pay the agreed amount of money to the recipient of the insured if the premium is paid up to date.

Purpose

people take for many reasons. Such insurance provides safety to family members when losing a loved one. For example, if the primary wage earnings die in its first -class, the dose of death from politics will help the surviving family members to overcome the burden of tragic loss. The proceeds can also help pay the cost of the funeral when death is unexpected. Large employers and government employers often offer life insurance without employees' costs. If an employee wants to get further coverage from the employer's insurance company, he can do so at a reduced rate. In most cases withThe insurance happens as soon as the employee no longer works for the company.

Cost

life insurance costs differ depending on such factors such as age, health and employment of the insured. Basically, the more likely the person dies of earlier than the average age, the higher the fees for premium fees. For example, a bonus for a 25 -year -old male, a non -smoker in excellent health will be much cheaper than a similar policy for a 65 -year -old smoker. Similarly, the Sky diver instructor would have to pay a much higher premium than a librarian.

options

Life insurance is available in a number of forms from several companies. Each Company has financial representatives who help customers choose the best insurance products for their needs. Typical forms of life insurance include: all life, variable life and term.

• Life : With the entire life of life, some of the bonuses are paid for insurance and the rest serves as an investment without tax. The policy of the whole life determines the bonus at the beginning of politics, and this bonus has not changed throughout their lives. This form of insurance allows the accumulation of cash during the life of the insured. This accumulation of cash can be used during politics or will simply serve to increase the benefit of death.
• variable life : variable life products begin with low bonuses during the initial phases of politics and these bonuses are constantly growing as the insured ages. Cash should be accumulated if different mutual funds are selected would work well.
• term life : The date of life policy has premiums that remain the same throughout the life of the policy that usually ends when the insured reaches a specific age. There is no accumulation of hot in terms of politicsSheep, and therefore the dose of death does not increase.