Life Insurance-features And Objectives By S.M The life insurance is conceived to protect people dependent on one from the financial losses that such people would incur in case of one’s death. The life insurance policy has become a fundamental part of sound financial owing to its association with investments, retirement plans and plans for real estate. Nowadays, various life insurance products are available. Each one is designed to fit certain unique circumstances and satisfy individual needs.
Two main kinds of life insurance are there:
i)Term insurance: This does not accumulate cash value and this is issued in order to cover the life of the insured person for a specific period of time only.
ii)Whole life insurance: These do accumulate cash value and are issued in order to cover the insured persons throughout their lifetime. The life insurance contract comprises of several rights and the person entitled for exercising these rights during the lifetime of the insured is the owner of the insurance policy. The following are the most common of
these rights:
designation of beneficiary, selection of settlement options, assigning
of policy benefits, transfer of ownership, making policy loans
and exercising policy of cash surrender.
The key purpose of life insurance is to provide security to one’s dependents in the event of one’s death.
The family of the person insured will be protected from the risk of ruin due
to financial crisis. It serves a two-fold purpose:
i)Protecting one’s
dependents with the monetary assistance to meet or settle one’s financial obligations.
ii)Providing
funds for covering the loss of income (of family or dependents) resulting from
one’s death.
All content published on this web site is
provided for informational and educational purposes only. Always
seek professional advice before making any decisions.
We use third-party advertising
companies to serve ads when you visit our website. These companies
may use information (not including your name, address, email address,
or telephone number) about your visits to this and other websites
in order to provide advertisements about goods and services of
interest to you. If you would like more information about this
practice and to know your choices about not having this information
used by these companies, click
here.
