Life Insurance And Income Protection
What is Life Insurance and Why you need them? by E K Gann
Life insurance is a contract between the policy owner and the insurance company,
where the insurer agrees to pay a sum of money upon the occurrence of the policy owner’s
death. In return, the policy owner agrees to pay a stipulated amount
called a premium at regular intervals.
Life assurance is a contract between the insurance company and the
policy buyer whereby a benefit is paid to the designated Beneficiarie/s if an
insured event occurs which is covered by the policy. To be a
life policy the insured event must be based upon life/s of the people named in
the policy.
Insured events that may be covered to include death and accidental death.
Life insurance may be divided into basic classification of temporary and permanent
and may be sub classified into
term, universal, whole life, variable, variable universal and endowment life insurance.
Term life insurance provides for life insurance coverage for a specified term of years
for a specified premium.
Permanent life insurance is life insurance that remains in force until the policy matures
or unless the policy owner fails to pay the premium when due.
life insurance is an easy way to protect your family and furhter more you can get
great coverage at a price you can afford.
Life insurance offers financial protection for the family.
You may think that you will not need life insurance when you are still single and young.
One thing for sure is when you get a life insurance policy at a younger age; your cost
of the premiums will be low.
But as you take on more responsibilities and your family grows,
your need for life insurance increases. The proceeds from a life insurance policy
can replace the income lost to your family upon your death.
Life insurance to pay off debts and expenses, leave money to charity, and cover
final and estate expenses and even double as a life long savings. You may able to cash out as and when you may need emergency cash. For this you will have to look closely to the terms and conditions as stated in your policies. Talk to an insurance agent or a financial planner for details advices.
About the Author
This article is written by E K Gann. His aim is to work together and help others starting business online. Especially beginners who are facing problems and difficulties getting resources. Read more about life insurance and related topics at :
http://atresources.com/lifeinsurance
True value of Life Insurance and Income Protection
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