Everything You Need to Know About Life Insurance

Life insurance is a type of protection that can be bought and insures the buyer in the event of death. The risk that is assumed by the insurer is the risk of death of the insured. Life insurance is a very good purchase in order to protect a family, especially if you are the sole breadwinner. Additionally, life insurance can help pay for funeral costs and therefore ensure that your death will not be a financial burden for your family.

It is important to understand the process of life insurance in order to truly grasp its value. A life insurance transaction has three parties: the insured, the insurer, and the owner of the policy (the insured and owner of the policy are often the same person). One of the most important parties involved with life insurance is the beneficiary. The beneficiary receives the policy proceeds upon the death of the insured. Only the owner of the policy can change the beneficiary. If the beneficiary is an irrevocable beneficiary, then any changes in beneficiary must be agreed to by the irrevocable beneficiary.

In order to solidify a life insurance plan with an insurer, the insurer must evaluate the insured's lifestyle. The insurer evaluates the risk of insuring the customer. Some insurance companies will not grant insurance to people with serious health issues, or extreme lifestyles. Insurance companies charge differing amounts for life insurance based on the risk evaluation. Part of the risk evaluation is a health evaluation. There are for categories for people seeking life insurance: Preferred Best, Preferred, Standard, and Tobacco. Having no family history of illness or early cancer, and being extremely healthy and active can result in a Preferred Best rating. Depending on lifestyles, and family histories, a person is slowly moved down the ladder. It is easy to move down the categories but almost impossible to move up a category.

Life insurance is a legal contract that has terms and conditions. In the event of the suicide of the insured, most insurance companies will declare the policy null and void. Misrepresentation by the owner or insured on the life insurance application is also a plausible reason for the policy to be nullified. Insurance companies are entitled to know the circumstances of the insured's death and can decide whether or not the policy should be nullified if there is suspicion of suicide. A death certificate must be shown to the insurer to prove the death of the insured.

As with any insurance policy, life insurance takes a substantial amount of time to mature. Once matured, the "face value" of the policy is given. A policy matures upon the death of the insured, or when the insured reaches a certain age. Depending on the policy, the insured can make differing amounts of payments over time. As with all insurances, failed payments result in the termination of the insurance.

Life insurance is a very good thing to have because it protects your family's financial well-being. In the event that you were the sole worker, life insurance can pay your family your salary for many years (depending on the policy). Life insurance can also cover the costs of funerals and therefore your death won't be a burden on your family.

Peter Wise is interested in financial matters and writes for Life Insurance Lowdown (http://www.lifeinsurancelowdown.com).

---

Converting An Unwanted Life Insurance Policy Into Ca$h

Do You Own A Life Insurance Policy That You No... Read More

Risk Retention Groups RRG

In response to a hard insurance market in the mid... Read More

Is Purchasing Travel Insurance Smart?

To answer the question "is purchasing travel insurance smart?" let's... Read More

Shopping Options for Auto Insurance

Shopping for car insurance can be a big undertaking. It... Read More

Why Would I Need Auto Insurance Specialists?

If you do not understand the way that auto insurance... Read More

Insurance in Northern Ireland: Historic Difficulties

No doubt most readers will have heard of the Northern... Read More

Which Car Should You Own To Keep Your Insurance Rates Most Affordable?

Do you consider the cost of insurance before you buy... Read More

How To Best Handle Health Insurance Plan Changes

Many economists have suggested and recent economic data indicates that... Read More

How Much Can My Auto Rate Increase After One Accident?

Accidents almost always make your insurance rates increase. Whether or... Read More

Flat Insurance in the UK

What are the factors involved in flat insurance? Do I... Read More

Basic Coverage of Homeowner Insurance Policies

The insurance policy is a package that includes more than... Read More

Natures Fury - Time to Check Your Insurance

The communities of Exmouth and Moora in Western Australia don't... Read More

The Best Rates on Life Insurance

Finding the best rates on life insurance is not difficult... Read More

Why Should I Go To A Life Insurance Broker?

A life insurance broker is a dedicated person that encourages... Read More

Disability Insurance For The Long Term

Disability insurance covers you for an extended period of time.... Read More

Auto Insurance In Texas

If you are looking for auto insurance in texas, you... Read More

About Online Term Life Insurance Rates

Online term life insurance ratesHow simple it is today finding... Read More

Finding Term Life Insurance Online

What exactly is Term Life Insurance?Term life is a form... Read More

Cheap Term Life Insurance is Available Everywhere

Cheap term life insurance is easier to get than most... Read More

Health Care and Health Insurance Costs Can Be Controlled Through Lifestyle Choices

As you probably know all to well, the cost of... Read More

Long Term Care Insurance - Low Cost Alternatives For Budget Conscious Seniors!

With Nursing home Cost's running $4,000 to $6,000 a month... Read More

Business Insurance ? And What You Need To Know

Getting your business up and running is exciting, challenging and... Read More

How To Negotiate A Settlement With An Insurance Claims Adjuster

You and I. M. Strong, the adjuster from Granite Mountain... Read More

Insurance or Assurance - Do You Need Reassurance?

Insurance versus assurance: what is the difference?Should you care?Yes!!The world... Read More

Disaster Decision - Do You Need Insurance?

The expenses involved with owning a home can be overwhelming... Read More

Understanding How Your Credit History May Affect Your Car Insurance Coverage

Many personal auto insurance companies consider your credit information when... Read More

Finding Auto Insurance Comprehensive Coverage

You can go online to easily find and quote auto... Read More

Travel Insurance Might Be Just What You Need!

Travel insurance is something that many people haven't considered. Sure,... Read More

Health Savings Account (HSA): How Do I Invest It?

The Health Savings Account (HSA) is an amazing tool that... Read More

Travel Health Insurance - Understand the Benefits

If you're planning an overseas trip, you need travel health... Read More

Term Life Insurance on Your Business Partner

Life insurance is something we often take out to protect... Read More

Insurance: A Necessity for Peace of Mind

There are many choices for insurance. Insurance is a policy... Read More

Do An Auto Insurance Comparison And Benefit From The Savings

It is very important to do an auto insurance comparison... Read More