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What Is Life Insurance?

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What is life insurance? It is a legally binding contract between a policy holder, an insurer or even a third party, and the insured on the death of an eligible individual. In simple terms, life insurance provides for an individual's financial security during his or her lifetime. The insured can obtain this from a single individual, a business or even a government agency. The insurance plan pays the named beneficiaries a specified amount of monetary value in exchange for the premium paid by the insured. To get more info on life insurance policy, read more here.

Why should one need to get life insurance? The answer is simple, one wants it because it provides financial protection for his or her family members and dependents. When an individual passes away, he or she leaves behind a dependent that needs cash and is unable to do so without the financial support provided by him or her. However, there is no guarantee that the insured will be around to provide the cash for his or her dependents after his or her death. The family has to look for ways to cover the bills of their children, spouse and other dependents.

There are different types of life insurance policies available in the market today. There are whole life, term, variable life, universal life. Whole life insurance offers a long term guarantee for the insured and is good for people who don't want to spend too much time waiting for an insurance payout. Term insurance gives the insured a set period in which he or she can choose to renew it with the insurer.

Variable life insurance policies are good options if you want the assurance of having your money at stake in case of a sudden demise. It is also known as an endowment, but its basic function is to provide the monetary security for the insured. Universal life is more commonly known as variable universal life. On the other hand, universal life has an option to renew it at regular intervals.

Permanent life insurance policies are the last option to consider. These policies pay for the insured's burial costs. Some policies pay for the funeral expenses only. There are two types of permanent life policies: whole life and endowment. With whole life, the insured pays a lump sum and does not have to pay any renewal charges. You can check out the best life insurance policy at https://lifeinsurancequotes.co.uk.

To find the right life insurance coverage, it's best to consult with several insurance companies. There are many websites online that offer free quotes. and discounted quotes from various insurers. If you have more than one policy, it would be wise to make a comparison to see which provider can provide you with the best deal. Read more on insurance law on this page: https://en.wikipedia.org/wiki/Insurance_law.