life insurance

Long ago, life was used as a way to save money for future use in funeral expenses and to help the family of the deceased. This approach is however limited to "the burial of the club" members of the Roman Empire. But now the 21 century, covering the life insurance policy does not load after death, but almost all other costs as well.

This type of insurance has been introduced in the public access at one end of the seventeenth century. Since then, this trend has become very popular and is actually one of the most common ways to protect yourself financially.

Common interests

Some famous uses of this life insurance to cover death benefits, such as funeral expenses, mortgage payments will replace the lost income that the deceased's family had to pay real estate taxes, retirement benefits, and more.

How does it work?

Basically there are three parties to a contract of life insurance, the insurance company or an insurance company the insured and the beneficiary. Normally, the insured person and the contractor is the same person, but the importance of the contractual partner is the beneficiary, who receives insurance proceeds, after the death of the insured.

Less life insurance, the policyholder pays a premium to adjust the insurer or the company in exchange for guarantees of certain insurance proceeds paid to the family or the closest family, after his death.

Variety

Life insurance is usually divided into two categories: term life insurance and permanent life insurance.

Term life insurance is a basic form of life insurance. The word "term", explains clearly that this policy is made, and will cover a certain period, say 5, 10, 20 or even 30 years to identify the insured. This policy of protection of the family of the insured, as well as give the money they can invest to replace their salary after his death. In short, this policy is pure insurance without cash value account.

Permanent insurance, on the other hand, there would still be active until maturity. This policy, unlike term life insurance has a cash value account, and generally have a higher premium as insurance purpose. There are four types of permanent life insurance is whole life insurance, universal life, limited pay-off, quality assurance and endowment.