Life insurance is a legally binding contract between an insurer and an individual, in which the insurer promises to cover a designated beneficiary an amount of money upon the death of that insured person, for a specified period of time. Life insurance is very important to individuals living under certain types of work situations because if an employee dies while at work, his dependents are usually not paid until his death is certified by a doctor. Many employers offer life insurance benefits as part of the company benefits and employees are expected to purchase this insurance to ensure that they can easily cover the cost of their loved ones’ funeral and other expenses incurred during the life of the insured person, depending on the kind of insurance chosen. There are several different types of life insurance policies available to the individual buyer, which vary according to their needs and the risk and value of the options that are presented to them.Find additional information at Life Insurance.
Term life insurance coverage is one of the most common forms of insurance coverage used by people today. This type of coverage provides the insured party with an amount of money to help defray expenses and provide for dependents if the insured dies during the term of the policy. People may use term insurance coverage to supplement or increase their existing savings or retirement income, depending on how much of the savings or income replacement that the person is able to attain during the lifetime of the policy. The amount of money that the insured individual will receive will depend on the stated amount of savings or income replacement provided by the life insurance policy. The insured party will also be responsible for paying a fee that would be deducted from any remaining money contributed by the insured, at the end of the policy’s term.
Another type of life insurance product is the whole life policy, which is another popular option for insurance buyers. In this type of policy, an individual buys a policy that offers a death benefit, which is calculated according to certain formulas and amounts, as well as a cash surrender value, which serve as the value of the policy for the benefit of the beneficiary or beneficiaries, upon the policy holder’s death. The cash surrender value of a whole life policy is also subject to the increasing trends of the investment’s market. The actual premiums that the insured party pays for this type of insurance product can also vary.
Sarah Atkinson – State Farm Insurance Agent
15061 Springdale St Ste 101, Huntington Beach, CA 92649