I for the first time saw the Life Insurance papers in front of my eyes. My father was paying the installment of the Life Insurance when this all happened. Actually today my father called off the life insurance agent and decided to pay him the amount of installment of the Insurance plan when I managed to see the legal Document.

Now you would consider this as a joke or something else. This is not a joke , it is for the first time in my life that i have seen the documents of Life Insurance.

Well before today i thought Life Insurance to be just a formality but when I was told by my Dad in brief then only i came to know about it.

Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the policy owner's death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals.

As with most insurance polices, life assurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people named in the policy.

Insured events that may be covered include:

• death,
• accidental death

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; for example claims relating to suicide, fraud, war, riot and civil commotion.

Life based contracts tend to fall into two major categories:

• Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment.
• Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums.

Life Insurance Types


There are different types of life insurance:

• Level Term Life Insurance – You are insured for the same amount throughout the agreed term.


• Renewable Term Life Insurance– You have the option, after a specified period (usually 5 years) to take out a further term life insurance policy without the need for any further evidence of health, provided the policy will not continue beyond a certain age (often 65 or more).


• Convertible Term Life Insurance – You can convert the life insurance policy to a whole life or endowment insurance without giving further evidence of your state of health. If you decide to convert, the new life insurance policy will usually cost the same as a normal whole life or endowment policy based on your age at the date when you exercise the option. If you have a young family and a limited income, these life insurance policies might be best. Not only do they provide cheap life insurance cover at the outset, but they also give you valuable options in later years if your income has risen or your health has declined.


• Decreasing Term Life Insurance – The sum insured reduces by a fixed amount each year, decreasing to nil at the end of the term. The premium will normally stay the same throughout the term.


• Increasing Term Life Insurance – The sum insured and premium increase each year by a fixed percentage of the original sum insured. These life insurance policies are designed to increase your insurance protection as your earnings increase.


• Family Income Benefit – If you die during the term of the policy, a regular income is paid to your dependants for the rest of the term. The income can be paid monthly, quarterly, or yearly. Some life insurance policies provide an income which increases each year at a fixed rate – say by 3% or 5%.

Get your Term Life Insurance Quotes now.

Contract terms

Special provisions may apply, such as suicide clauses wherein the policy becomes null if the insured commits suicide within a specified time (usually two years after the purchase date; some states provide a statutory one-year suicide clause). Any misrepresentations by the insured on the application is also grounds for nullification. Most US states specify that the contestability period cannot be longer than two years; only if the insured dies within this period will the insurer have a legal right to contest the claim and request additional information before deciding to pay or deny the claim.

The face amount on the policy is the initial amount that the policy will pay at the death of the insured or when the policy matures, although the actual death benefit can provide for greater or lesser than the face amount. The policy matures when the insured dies or reaches a specified age (such as 100 years old).

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So in order to secure your future get your life insurance quotes now.