7/26/2011

All you need to know in life insurance

"Make all you can, save all you can, give all you can". This is the famous quote by john Wesley, so save all you can in the best possible ways and there are different ways to save the money and insurance is one of the best investment plans for your future. There are many types of insurance and let us see life insurance in detail. Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current.

Life insurance policies is opted by the people for a number of reasons and it provides security to family members upon the loss of a loved one. For instance, if the primary wage earner dies in his or her prime, the death benefit received from a life insurance policy will assist the surviving family members in overcoming the burden of the tragic loss. Life insurance can be purchased by individuals, but is also offered as a perk by many employers. Often times, large employers and government employers offer group life insurance at no cost to the employee. Should the employee wish to obtain additional life insurance from the employer's insurance company, they can usually do so at reduced rates.

Insured's age, health, and occupation are some of the factors in which the cost of life insurance varies. For example, the premium for a 25-year-old, male, non-smoker in excellent health will be far less expensive than a similar policy for a 65-year-old male smoker. Similarly, a sky dive instructor would have to pay much higher premiums for life insurance than would librarian. Life insurance is available in a number of different forms to fit the tastes of the proposed insured. Some of the typical forms of life insurance policies include: whole life, variable life, and term life. Term life insurance policies begin with low premiums during the initial stages of the policy and these premiums increase steadily as the insured grows older. There is no cash build-up in a term policy and, accordingly, the death benefit will not increase.

By taking the time to understand what benefits life insurance can provide within the context of an individual's situation, it may be a very practical solution in the long run. A whole life policy sets a premium at the beginning of the policy and that premium does not change over the life of the policy. This form of insurance allows for a cash build-up during the insured's life. This cash build-up can be used during the course of the policy or it will simply serve to increase the death benefit in the end. Another reason to consider whole life insurance an investment worth pursuing involves the tax breaks offered in many nations to encourage the purchase and maintenance of life insurance coverage.

About the author:
Theodore Roosevelt is an Expert author for healthnet insurance California. He has written many articles like kaiser insurance california. For information visit our site california healthnet insurance company.

Article Source: http://www.Free-Articles-Zone.com


Article tags: blue shield of california coverageanthem blue cross individual group plans blue shield of california individual plananthem blue cross of Californiablue shield of california providershealthnet insurance california
 

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