LIFE INSURANCE
Life insurance (or life insurance, particularly within the Commonwealth), could be a contract between associate degree contract holder associate degreed an insurance underwriter or assurer, wherever the insurance underwriter guarantees to pay a delegated beneficiary a total of cash (the benefit) in exchange for a premium, upon the death of associate degree soul (often the policy holder). reckoning on the contract, alternative events like terminal sickness or vital sickness can even trigger payment. The policy holder generally pays a premium, either often or collectively payment. alternative expenses (such as ceremony expenses) can even be enclosed within the edges.
Life policies area unit legal contracts and therefore the terms of the contract describe the restrictions of the insured events. Specific exclusions area unit typically written into the contract to limit the liability of the insurer; common examples area unit claims concerning suicide, fraud, war, riot, and civil commotion.
Life-based contracts tend to constitute 2 major categories:
Protection policies – designed to supply a profit, generally a payment payment, within the event of such as event. a standard sort of a protection policy style is insurance.
Investment policies – wherever the most objective is to facilitate the expansion of capital by regular or single premiums. Common forms (in the U.S.) area unit whole life, universal life, and variable life policies.
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