As with most insurance policies, life insurance is a contract between the insurer and the policy holder whereby a benefit is paid a specific amount, usually in one lump sum, to the designated Beneficiary (or Beneficiaries) upon the occurrence of the insured individual's or individuals' death. In return, the policy owner pays a stipulated amount called a premium at regular intervals or in lump sums.
Specific exclusions written into the contract limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil uprising.
Life insurance policies fall into two major categories:
#1 Protection, or term insurance. This form provides a lump sum payment in the event of specified event.
#2 Investment. This type of life insurance is also known as whole life, universal life and variable life policies is designed to grow capital through the payment of regular or single premiums.
Please visit Life FAQ
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