Free Insurance Information

Almost 85 per cent of people in the United States own life insurance policies. Buying a life insurance policy ensures that your family and beneficiaries will have enough money after your death to have a continuing lifestyle even when the breadwinner is no more. It is a contract entered between the policy owner and the insurer that the beneficiaries of the policy holder will get a lump sum of money in the event of his death.

This lump sum is decided by the policy owner when he buys the policy. In return he has to pay a fixed amount at fixed intervals which is called the premium. This depends upon the amount for which the person has insured his life, the length of the policy and the age of the person when he buys the policy. There may be specific exclusions like claims relating to suicide, fraud, riots and others. Generally the insured person and the policy holder is one and same but there may be cases when a person buys the insurance for his partner, in which case he is the policy holder while she is the insured person.

When you buy life insurance you have to name the beneficiary which can be changed under certain circumstances if you so desire. The beneficiary may not know that he is one. The proceeds of the policy will go to him when the policy holder dies. When you buy the policy the facts stated should be true. If there are any misrepresentations, the policy may be nullified.

When the insured person dies, proof of death (death certificate) has to be presented by the claimant, duly signed. If there are any suspicions, especially if the amount is large and the death is sudden or within a short period of buying the life insurance, then the insurer has every right to investigate the circumstances of the insured person’s death before the claim is settled. Sometimes the amount may be paid over a period of time if the insured person has so willed (this may be in case of under aged beneficiaries).

You can buy temporary insurance or permanent one, universal, whole life or endowment life insurance. The three factors to be considered while buying life insurance are the face amount of the policy, the premium to be paid and the term of the policy. Insurance companies sell insurance with different combinations of these three factors. The amount, term or premium can vary with different insurance companies. The premium paid is generally exempted from tax in most states.
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