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Term Life Insurance

Get Protected For Life

Life Insurance is a legal contract with a company to guarantee money to a designated beneficiary when the insured person passes away. The contract holder promises to pay a defined premium in exchange for a money benefit paid to the beneficiary upon the death of the insured person. Such a policy provides for the financial needs of the person receiving the benefit and is a useful means of assuring the well being of a spouse or other loved one.

This type of insurance is a viable tool for people in all walks of life to help ensure that loved ones or some other beneficiary will be cared for after the death of the insured person. It is also an important part of a complete investment package. Depending on the type of policy, the insurance may be used to protect and grow capital by paying in either a one time or regular ongoing premiums that gain interest until the payout of the benefit.

When a person decides to purchase life insurance for themselves or another person, they will contract for a particular type of policy. The insuring company will calculate policy prices based on information collected from the application. Based on health history and other lifestyle parameters of the insured individual, the company will use mortality tables to calculate a life expectancy and determine the cost of the insurance policy. The policyholder will pay the agreed upon premiums to fulfill their part of the contract. Upon death of the insured person, the company will require a notarized death certificate or other proof of death before paying the claim. Payment of the benefit may either be in lump sum or in installment payments depending on the terms of the contract.

There are several types of life policies available today. Some of the most common are term insurance, whole life, universal life, and variable life policies. Depending on the type, the policy may have a fixed benefit or may be able to gain in value over time. Selection of the policy type depends on the needs and goals of the policy owner.