What is life Insurance ?

What is life Insurance ?


Life insurance is an agreement between life insurance coverage company (the insurer) and policy's owner

(insured person) underneath the terms of a life insurance contract.Anything is in consideration

of certain payments (known as the premium) to be made to the insurer either in a lump sum or in

any other periodical payments.The insurer offers to pay a certain sum to a designated beneficiary

when insured person die, in exchange for your premium payments,this is the basic principle behind

 all life insurance contracts.



Life insurance is the financial resource of the individual’s family during the happiest moments

of his or her life but during unhappy moments too.



In human life death is Uncertainty,so having family means dependants, meaning financial

commitments.What would happen if you were to lose your life suddenly or become disabled and

cannot earn.In this situation Life insurance gives some form of protection against the financial

loss and gives guarantees that your dependants can continue living without financial

 hazards even just in case of your demise.



There are many kinds of policies that may be available,some major types are



1 Term Life Insurance:

Term life insurance provides protection for a specified number of years. A death benefit is

paid to the beneficiary if the insured dies within the time while the policy is in force.



2 Permanent life insurance coverage or Whole life insurance :



Permanent life insurance designed to provide protection for a lifetime.Permanent life

insurance policies are generally designed to possess a level premium.



3 Universal Life Insurance:



Universal life insurance policies vary from whole life insurance policies in that they

offer some flexibility to change the premium payments and death benefit. Despite the fact that premium

payments are flexible, the absolute minimum premium is required to keep the life insurance protection

in effect.

What is life Insurance ?