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 regular 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.

Level Term Life Insurance is more common than an annual renewable term insurance.

The premiums are guaranteed to be the same for a given period of 10, 15, 20 or 30 years and is based on the cost of each year’s annual renewable term rates, therefore the longer the term, the higher the premium.

Most Level Term Life Insurance programs include a renewal option which allows the insured person to renew for a maximum guaranteed rate if the period needs to be extended. This clause is invoked only if the health of the insured deteriorates during the term.

Term Life insurance does not build cash value. It provides coverage for a limited period of time and usually has to be renewed on an annual basis and the insurer can decide to pay annually increasing premiums to continue the coverage or drop the policy. This insurance is for a term of 1 year.

If the insured person dies during the term, the death benefits will be paid to the beneficiary. It is the most inexpensive way to purchase a death benefit on the coverage amount.

Because Term Life is a pure death benefit, its use is to provide for covering financial responsibilities to the insured such as: to cover consumer debt, dependent care, college education for dependents, funeral costs and mortgages.

We cannot for see what illness will befall us, and I personal think in todays world it would be worthwhile to get a Critical Illness Insurance policy.

Critical Illness Insurance covers you in case you become ill and you are diagnosed with the illness listed in this insurance policy. This policy would be very benefical if you become very ill because you can receive a lump sum cash payment . In some cases the policy could be structured to pay out regular income if you undergo a surgical procedure.

This policy may require that you must survivie a minimum number of days from the time when your illness was diagnosed. The survival period is usually 28 to 30 days.

You should read the fine lines in your policy to understand what illnesses your policy covers. The most common conditions would be: blindness, deafness, kidney failure, heart attack, multiple sclerosis, cancer, parkinson’s, major organ transplant, paralysis of limb, terminal illness, etc….

The finances received from this policy during a Critical Illness is usually used to: pay off debt, replace lost income, pay for recuperation aids, pay for costs of the care and treatment.

It would be financially wise to purchase a Critical Illness policy in conjuction with a Life Insurance policy. If you have not purchased a Critical Illness Policy you should consider talking to your insurance company.

Property and Casualty Insurance is called General Insurance which comprises of any insurance that is not determined to be Life Insurance.

This insurance is a non-life insurance policy. A General Insurance includes automobile, homeowner, pet, creditors, public liability workers comp, and other insurance policies

A General Insurance policy provides payments depending on the loss from a particular financial event.

Variable Universal Life Insurance is a type of life insurance, that builds a cash value. The cash value can be invested in a wide variety of separate accounts, like mutual funds, and the choice of how to use the accounts is entirely up to you, the owner.

Variable universal life is also considered to be a type of permanent life insurance, because the death benefit will be paid if the insured dies any time up until the endowment age (typically 100), as long as cash value of pay the costs of insurance in the policy.

Variable universal life insurance receives special tax advantages in the United States IRS code. The cash value in life insurance is able to earn investment returns without incurring current income tax as long as it meets the definition of life insurance and the policy remains in force.

This Insurance is relatively for wealth people who give money to their children.