Life Insurance

Life insurance is a kind of agreement made between a living person and an insurance company. The person, or the insured, must pay a regular fee (called a premium) to the insurance company. In return, the insurance company will pay a pre-determined sum to the insured's family upon his or her death. Most life insurance policies cover both natural deaths and accidental deaths.

There are many kinds of life insurance policies on the market. Some of them are:

Temporary Life Insurance:

Temporary life insurance policies offers life insurance coverage for a limited period of time. Temporary life insurance premiums buy protection for nothing else but death. If the insured outlives the policy, nothing is paid.

Permanent Life Insurance:

Permanent life insurance is a kind of insurance that stays valid until the policy gains maturity or the policy holder fails to pay the premium within due date. Permanent life insurance can be of three types: Whole life, universal life and endowment.

Accidental Death Life Insurance:

Accidental death life insurance is a limited policy which covers the life insurance policy holder at the time of his death due to an accident. This type also makes settlements, or payouts, in the event of loss of fingers, eyes, hearing, legs, arms, or other body parts, due to an accident.

Anybody who has dependents (children or a spouse that relies on this person's income) should invest in life insurance. In the event of his or her death, the insurance settlement will cover the lost income resulted in that person's death.

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