Life insurance can safeguard from the probability of financial loss as a result of an untimely death as well as provide investment alternatives through the accumulation of capital values(cash value life Insurance like Universal and Whole Life Policies.
Just like an individual may create financial security by purchasing term life insurance, so can a companypurchase a life insurance policy on a key employee or the onwer.In many company there is that one person on the production line that is so valuable that you could wonder just what the company would do if s/he weren't there.
Life insurance coverage is really a contract between an insured (insurance policy holder) and an insurance carrier, in which the insurer promises to pay a designated beneficiary an amount of cash (the "benefits") upon the death of the insured person. Based 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 (for example funeral expenses) are also sometimes as part of the benefits.
The advantage for the policy owner is "peace of mind", in understanding that the death of the insured person will not result in financial hardship for loved ones and lenders.It will be possible for life insurance cover payouts to be made in order to help supplement retirement benefits; however, it should be taken into consideration in the design and funding of the policy itself.
Life plans are legal contracts and the contract terms describe the restrictions of the insured events. Specific exclusions are often written to the contract to limit the liability of the insurer; common examples are claims in relation to suicide, fraud, war, riot and civil commotion.
Life-based contracts often get into two major categories:
Protection policies - designed to provide a benefit in the eventuality of specified event, typically a lump sum payment. A common form of this design is term insurance.
Investment policies - where the main objective would be to facilitate the expansion of capital by regular or single premiums. Common forms (in the US) are whole life, universal life and variable life policies.
Pablo Lazaro Life and health Insurance agent in Miami www.unitedInsuranceNetwork.com
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