Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the benefits.
The advantage for the policy owner is "peace of mind", in knowing that the death of the insured person will not result in financial hardship for loved ones and lenders.
It is possible for life insurance policy payouts to be made in order to help supplement retirement benefits; however, it should be carefully considered throughout the design and funding of the policy itself.
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; common examples are 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) are whole life, universal life and variable life policies.
Other articles related to "life insurance, insurance":
... The owner of the building, Commonwealth Life Insurance Company, created Capital Holding Corporation in 1969 and, as the company grew, decided to build a new headquarters building on the southwest ... Once Commonwealth Life Insurance Company and Capital Holding relocated to their new headquarters, the Commonwealth Building was imploded on January 16, 1994 ...
... SIGAL UNIQA Group AUSTRIA is the leading insurance company in Albania, established in February 1999, following the liberalization of Albanian's insurance market in the same year ... leader with more than 30% of shares of the non -life insurance, life insurance and private pensions market in Albania ... UNIQA Group AUSTRIA, one of the leading insurance company in Austria and one of the strongest financial groups in CEE, is the major shareholder of SIGAL UNIQA Group ...
... Stranger-originated life insurance ("STOLI") generally means any act, practice, or arrangement, at or prior to policy issuance, to initiate or facilitate the issuance ... This includes the purchase of life insurance with resources or guarantees from or through a person that, at the time of policy initiation, could not ... The main characteristic of a STOLI transaction is that the insurance is purchased solely as an investment vehicle, rather than for the benefit of the policy owner's ...
... Lenard left KNOE and relocated to Shreveport to joined Atena Life Insurance Company as its assistant general agent ... became general agent for Pan American Life Insurance, having been responsible for the hiring and training of sales associates ... worked as a recruiter and trainer for Lincoln National Life Insurance ...
... underwriting and insurable interest provisions) make it difficult, life insurance policies have been used to facilitate exploitation and fraud ... In the case of life insurance, there is a possible motive to purchase a life insurance policy, particularly if the face value is substantial, and then murder the insured ... As part of their assistance, they took out life insurance for the men ...
Famous quotes containing the words insurance and/or life:
“Women hock their jewels and their husbands insurance policies to acquire an unaccustomed shade in hair or crêpe de chine. Why then is it that when anyone commits anything novel in the arts he should be always greeted by this same peevish howl of pain and surprise? One is led to suspect that the interest people show in these much talked of commodities, painting, music, and writing, cannot be very deep or very genuine when they so wince under an unexpected impact.”
—John Dos Passos (18961970)
“... such is the horrible idea that I entertain respecting a life of servitude, that if I conceived of there being no possibility of my rising above the condition of servant, I would gladly hail death as a welcome messenger.”
—Maria Stewart (18031879)