Life Insurance - Getting It Right For The Future
Insurance:
Life Insurance or Life Assurance is a form of insurance that provides a payment of a sum of money to a named beneficiary upon the death of the policyholder or to the policyholder if still living after reaching a specified age. The terms 'insurance' and 'assurance' are often interchanged but there meanings are different.
Insurance is when cover is provided for an event that might happen while assurance is the provision of cover for an event that is certain to happen. Life assurance typically covers the insured in the event of natural death whereas life Insurance covers accidental death.
Who can take out a Life Insurance policy?
It is possible to take Life Insurance out on your own life or another. It is therefore possible for the person that is insured to be a participant in a contract but not necessarily a party to it. Insurance companies have sought to prevent people taking out speculative policies on people they expect to die.
Cestui qui vit refers to when the policy owner is not the insured. CQV usually requires those purchasing a policy to have an 'insurable interest' in the insured. This is designed to prevent people with no interest murdering the insured to receive the payout. 'Insurable interest' usually includes family members and business partners.
History
The first form of Insurance reputedly took place 5000 years ago in China. To spread the risk of having their cargo pirated merchants would share their cargo with another boat so that if captured the entire shipment would not be lost.
Life Insurance began around 450 A.D. in ancient Rome where burial clubs were formed to cover the funeral expenses. Life Insurance appealed to the gambling instincts of people in Victorian England. People would speculate on the date at which they expected prominent people to die. Such wagers were made illegal in 1774.
Why take out life insurance?
Nowadays people take out Life Insurance to make sure loved ones are cared for after death. Policies are arranged to cover Mortgage repayments so that in the event of death a mortgage is paid off. Life Insurance can replace the primary earner's salary. This ensures that the family does not fall on hard times after your death.
Some people take out a policy to ensure that there is adequate childcare after the death of the primary child carer. Another reason to take out Life Insurance would be to cover education expenses so that school/University fees are covered after the death of the primary earner.
Types
There are two major categories of Life Insurance: Protection policies and Investment policies. Protection policies typically provide a lump sum payment on the death of the insured. It pays out if you die within the dates of your policy but otherwise you get nothing.
It is the cheapest way to provide financial protection for your family. The main objective of Investment policies is to facilitate the growth of capital by regular or single premiums. Alongside paying out in the event of your death it is also possible to build up an investment value that can be cashed in during your lifetime. There are many types of cover available under these broad categories.
Factors that influence policy
Insurance is based on probability and the Insurance Company is likely to assess you against certain criteria.
The three main variables in a mortality table have been age, gender, and use of tobacco. People that are considered of greater risk to insurance companies include; High-risk occupations such as the oil and gas industry, the Armed Forces, pilots and fishermen; Dangerous sports/hobbies such as aviation, climbing, motor sports, parachuting and skiing; poor medical history- especially smokers; and over 60s.
Shaun Parker has been dealing with life insurance for several years now. For more information visit The Idol for details on Life Insurance, and how it can benefit you.
Hot Topics In Insurance
Low Cost Health Insurance - Knowing The Terms And Alternatives
Paying for health care can consume a large portion of an individual or family's disposable income. Some costs are non-negotiable but there are ways to lower the amount you spend on insuring your healt...Travel Insurance: Prevention Is Better Than Bills
It is really fun going on a holiday trip. You will be so busy strolling around, doing what you do not usually do, like skiing, windsurfing and other activities worth spending your holiday with. Outdoo...Auto Insurance Options for your Family
Buying auto insurance can be very expensive these days but it is possible to reduce the overall costs a little and still make sure that you have all of the necessary insurance coverage for your car or...Auto Insurance Michigan: The Online Option Provides Many Options As Well As Quick Insurance Formalit
There are a number of websites where it is possible to obtain multiple rates offered by numerous insurance companies that provide auto insurance Michigan. In fact, the auto insurance Michigan rate is ...Arizona Car Insurance Quote - What Is Too Much To Pay?
Arizona auto insurance is not cheapArizona ranked as the thirteenth most expensive state for auto insurance during the years 1999 to 2003. With insurance average insurance premiums rising to $920.3...
Your Choices in Medical Insurance
There are many options for you in medical insurance and you'll find that there is no one plan that offers everything you will need. All plans differ in what is offered, what you have to pay, and how e...
7 Things To Do Before Buying Travel Insurance
Going back to Roman times, risks have been shared during times of tragedy and unforeseen circumstances, such as earthquakes, floods and the like. The first formal and recorded insurance company, Lloyd...Search For Cheap Insurance Online: 17 Tips for Getting the Best Insurance Quotes
Does the thought of searching for quality, reliable insurance make you cringe? Looking for affordable insurance, whether it's auto, home, life, health, renter's and so on, is much easier then you thin...Reasons To Consider Travel Insurance
When planning a trip out of the country one of the major considerations, after the booking of plane tickets and hotel rooms are arranged, must be travel insurance. As an American traveling to Europe o...The Cost Of Home Owner Insurance
There isn't a new home buyer in this country who doesn't ask "How much is home owner insurance?" when they are purchasing their new home. It does, after all, add to the cost of buying a new home. Ther...Motor Trade Insurance: An Absolute Essential
If you are in the motor trading business, then the most important aspect of your business is getting the best price possible. The only way that you can make money on your deals is if you get the lowes...Health Insurance When Traveling
Even if you have an excellent health insurance cover at home it will not always work if you travel, especially abroad. In many occasions you will need to get a separate travel health insurance.If y...
Most Recent Insurance Supplements
- Are PLR Articles Really a Powerful Business Tool?
- Melaleuca Success requires attraction marketing
- Protecting Your Assets with Homeowners Insurance
- Find Out What Type of Health Insurance is Right for You
- Life Insurance - Getting It Right For The Future
- Whole Life Insurance Advices It Better?
- Car Insurance -- A Simple Tip For Saving More
- Second to DIe Life Insurance
- Medical Health Insurance For Children and Students
- Finding The Right Insurance For You
- Car Insurance -- A Simple Tip For Saving More
- Finding The Right Insurance For You
- Feel dignified with senior life settlement
- 7 Things To Do Before Buying Travel Insurance
- Why You Need Home Owner Flood Insurance
- Protecting Your Assets with Homeowners Insurance
