What does life insurance mean?
In simple words, life insurance means Insurance paid to named beneficiaries when the insured person dies. It is a type of insurance that pays out money when the insured person dies or the money is paid to an insured person after a set period. Life insurance is one type of contract between the policyholder and the company which is offering life insurance where the insurer (insurance company) promises to pay a sum of money in exchange for a premium.
What are the three types of life insurance?
The three main types of life insurance are whole life or permanent life insurance, term life, and universal life insurance.
Can I have 2 life insurance policies?
yes, You can have more than 1 life insurance policy, there are no legal limits to how many life insurance policies you can own.
What is life insurance and how does it works?
Life insurance is a contract between an insurance company and you in exchange for a premium where you will pay premium payments and the company will pay a lump sum amount as a death benefit to your beneficiaries after your death. This is how the contract works.
What is life insurance in simple words?
In simple words, life insurance is an amount paid to the beneficiaries when the insured person dies. The insured person pays premiums during his life.
What is the main purpose of life insurance?
The main purpose of life insurance is to provide financial benefits to beneficiaries upon the premature death of the insured person. The life insurance policy pays some amount called "death benefit" to the beneficiaries.
Why is it important to have a life insurance?
The life insurance policy will secure your family or beneficiaries as it protects and let you leave them a non-taxable amount at the time of death. The life of the family remains secure because of life insurance.
What happens to your life insurance if you don't die?
If your policy expires and fortunately you are alive then the insurance company will return the amount you have paid, the refundable amount is not taxable it's a tax-free amount.