Life Insurance: The Life Insurance or Life Assurance is a contract joining to Insurance Policy holder and an insurer or assurer, where insurer guarantee to pay the beneficiary some amount of money (Benefit) in exchange for a installment, upon the death of the insured folk (often known as policy holder).
Depending on the commitment, such as incurable or critical diseases can also set up the payment. The policy holder generally pays a insurance charge. Other expanse such as the funeral expenses can also be included in the benefits.
Life policies are legit contracts and the terms for the contract explains how the limitations of the insured circumstances.
Life Based agreement tend to lay on two major classification.
- Protection Policies
- Investment Policies
Different Types of Life Insurance Policies?
There are Two fundamental types of term life insurance policies: Level terms and decreasing term.
Level Term method that the death interest remain the same throughout the period of the policy.
Decreasing Term method which is used for death interest drops, usually over in one year addition.