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View Full Version : Tip Of The Day - 1/23/06 - Life Insurance


Sean Adams
01-23-2006, 09:39 AM
The Basics....

Life insurance is a type of insurance that pays a sum of money to the beneficiary of the insured person only if the premiums of insured are in progress. It works like all other insurance policies. In life insurance insured person ensures his life by paying a small amount of premium.

Actually life insurance is an agreement between insured and insurance company. Insurance company agrees to pay a certain amount of money to insuredís beneficiary in case of death of insured. Beneficiary may claim for the policy only if the premiums of the insured are current.

Life insurance policy offers security to the surviving family members in case death of a loved one. Insurance company tries to overwhelm the loss by paying a sum of money. People may buy life insurance policy from individuals or insurance companies. Sometimes government offers group life insurance to government employees at no cost. Employees can obtain life insurance at reduced rates from the insurance company of their employer.

Cost is the major factor in life insurance policy that totally depends on life, health and occupation of the insured. It can be illustrated as the insurance policy of 24 years old person is inexpensive than 60 years old person. It is available in different types such as whole life insurance, variable life insurance and term life insurance.

Premiums in the initial stages, of the term life insurance policy, are low but it increases gradually as the insured grows mature. Whereas a part of each premium pays for insurance and rest works as tax-free investment in case of whole life and variable life insurance. Amount of premium doesnít change through out entire policy. It is used to increase death benefit in the end.

Premium remains same in variable life insurance. It provides permanent protection to the insured. It doesnít offer guarantee to amount of cash value during lifetime of insured.

Choose the best life insurance policy and make your loved ones happy after you.


Author is from www.mycheaplifeinsurance.com

Hard Worker
01-24-2006, 12:00 AM
Thanks Sean, Good advice no matter how young you are. All the more reason we need a professional sponsor on this site that can answer questions such as life & health insurance as well as retirement planning. Its probably safe to say that not to many of the younger folks have anything set aside for retirement. Heaven forbid they don't have health insurance.

Sean Adams
01-24-2006, 12:23 AM
I am checking with a couple companies right now.... different financial planning, insurance of all kinds,etc... will see what I canget together.