This article is dedicated to talking about Life Insurance Policy and quotes. However, a Life Insurance is simply a contract between a life insurance company and a person seeking to be insured. The insurance company makes a lump-sum payment, called a death benefit, in exchange for making premium payments to the provider. The lump-sum payment payable to the persons the insured states as his/her beneficiary in the Insurance Policy.
What Are The Main Types of life insurance Plans
By practice, most insurance companies have developed other classes of life insurance. However, the two main type of life insurance includes:
- Term life insurance and
- Whole life insurance
What is Term life Insurance?
Term otherwise called temporal insurance is a kind of insurance that is for for a particular period of time. Term Life Insurance is only meant to cover for a period of time and not your entire life. It may run for lets say 10 – 20 years or even more. The implication is that amount of premium you pay stays the same throughout the term.
At the end of the term, the agreement between the insurance provider and the individual simply expires and there are no more obligations on either side. However, if the insurance policy expires, the Insurance company normally will issue a corresponding premium for a new policy but it will be significantly higher.
What is Whole life Insurance?
Whole life insurance, or whole of life assurance, sometimes called “straight life” or “ordinary life,” is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime, provided required premiums are paid, or to the maturity date.
The essence of Whole Life Insurance is to provide protection during your entire lifetime and offers death benefits. The death benefit is to be paid to your beneficiary in the event of your death. We recommend Life Insurance companies like AXA Mansard Whole Life Insurance Company for You Today. They have been in the business for long have long pinch of experience.
What are the Ways Life Insurance Companies Determine and Fix their Premiums
There are so many indices that help insurance companies in determining and fixing the premium payable from you. Based on your medical examinations as well as your Application details, your life insurance company will consider the following to fix your Premium.
- Age: You should know that if you are younger, your premium like likely be lower that of a person who is much older.
- Occupation: Life Insurance Company will check your Occupation to determine whether or not you are occupation exposes your to risk and hazardous places that may lead to death.
- Family history: Family history is very important because it will help Insurance Company determine whether or not your family is prone to any hereditary sickness that may short your life span at any time
- Driving record: It is estimated that 70 percent of death is caused by road accident. That is why a good Life Insurance Company will inquire of your driving record to make sure you aren’t a careless driver.
- Drinking and smoking habits: If you consume large amounts of alcohol or smoke heavily, both can take a major toll on your health. The good news is that if you get these vices under control, you may be able to convince a life insurance company to reduce your premiums in the future.
Finally, all the above indices and lot more will contribute to what your premium will be.You can get your free Life Insurance Quote today, from AIG Life Insurance Inc. We trust them.
You may wish to check out the Top 10 Best Life Insurance Companies In The United States in 2019. This will help you decide which company will insure you. However, we would also wish to introduce you to Banner Life Insurance Company and Protective Life Insurance Company. These are good life insurance companies.
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