Life insurance or life

Life insurance or life

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 political death of the owner. In return, the policy owner (or policy payer) agrees to pay an estimated amount called a premium at regular intervals.As with most insurance policies, life insurance is a contract between the insurer and the policy owner (insured) in the sense that a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy.To be a life policy the insured event must be based upon life (or life) of the persons named in policy.Insured events that can be covered include: death, accidental death


Life policies are legal contracts and conditions of the contract describe the limitations of the insured events. Specific exclusions are often written in the contract limiting 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 case of an event, usually a lump sum payment. investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums.

There are three parties to the contract parties to a transaction of life insurance: the insurer, the insured and the policy owner (policy holder), even if the owner and the insured are often the same person. For example, Joe buys a policy on his life, he is the owner and the insured. But if Jane, his wife, buys a policy on Joe's life, is the owner and insured. Politics is the beneficial owner and he or she will be the person who pays the beneficiary receives the insurance proceeds policy.The political death. The owner designates the beneficiary but the beneficiary is not a part of politics. 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.