What is a life insurance policy?

Written by on December 13, 2007 in General

Life Insurance is a contract between the policy owner and the insurer. The insurer agrees to pay a sum of money in the event of the policy holders death to the designated Beneficiary.

A Life Insurance Policy is based upon life of the person named in the policy. The policy is paid out when the following events occur: death, accidental death or sickness.

In return the policy owner agrees to pay a premium at regu19152690lar intervals or in a lump sum.

Life Insurance policies are legal contracts and the terms of the contract describe the limitations, specific exclusions are often written into the contract to the limit the liability of the insurer, for example most claims relating to suicide before 2 years of the date the policy is written will not paid in full.

The beneficiary receives policy proceeds upon the death of the insured person and only the owner can change the beneficiary and only the owner can designate the beneficiary to his policy.

Life Insurance Providers

Tags: Accidental Death, Beneficiary

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