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Rashdullah Shah 133
Rashdullah Shah 133
Rashdullah Shah 133
life insourance:-
Life insurance (or life assurance,
especially in the Common wealth of
nation) is a contract between an
insurance policy holder and an
insurer or assurer .where the insurer
promises to pay a designated
beneficiary a sum of money upon
the death of an insured person
(often the policy holder). Depending
on the contract, other events such as
terminal illnress or critical illness can
also trigger payment. The policy
holder typically pays a premium,
either regularly or as one lump sum.
Other expenses, such as funeral
expenses, can also be included in the
benefits.
Life insurance certificate issued by
the Yorkshire Fire & Life
Insurance Company to Samuel
Holt, Liverpool, England, 1851. On
display at the British Museum in
London
Life policies are legal contracts and
the terms of the contract describe
the limitations of the insured events.
Specific exclusions are often written
into the contract to limit the liability
of the insurer; common examples
are claims relating to suicide, fraud,
war, riot, and civil commotion.
Difficulties may arise where an event
is not clearly defined, for example:
the insured knowingly incurred a risk
by consenting to an experimental
medical procedure or medication
resulting in injury or death.
Types of Life Insurance –
Overview
There are four major types of life
insurance policies. These life
insurance types are Whole Life
Insurance, Term Life Insurance,
Universal Life Insurance, and
Variable Universal Life Insurance.
Within each of these classes of life
insurance policy types, there are
even further variations that exist,
but the vast majority of all policies
are one of these four. Some policies
will make life insurance agent’s more
money than others. For instance,
whole life will often make them the
largest commission for any given
death benefit, and term life
insurance will usually make them the
smallest commission. This means
that an agent does not have a very
big incentive to sell a policy that is
the most beneficial to the vast
majority of people. Arguments can
be made for the benefits of each
type, but each situation is unique
and calls for a careful understanding
of the costs and benefits involved.
For an in-depth discussion regarding
the pros and cons of “purchasing
term life insurance and investing the
difference”, see our article on the
subject here. Below is a description
of each type of life insurance policy,
along
with some benefits and drawbacks of
each kind.