July 24, 2009
Terms for LIC pilicy
Life insurance or assurance e is a bond signed between the insurance company and the insured person where the insured agrees to pay stipulated amount to the insurance company for specific period of time in lump sum or intervals which is known as premium. Instead the insurance company agrees to pay a sum of money if death is occurred of the person who is insured. It is a contract between the policy holder and insurer where death benefits are passed on to the beneficiaries. There are three key factors for Life Insurance which are face amount or death benefit, premium and length of coverage or term. There are different types of life insurance policies like universal life coverage, whole life coverage or permanent life coverage.
Term life insurance provides coverage for a specific time limit. After the time limit is over the policy holder can either quite the policy or can renew it. If death occurs of insured person during that time limit, the death benefits are paid to the beneficiaries. Many insurance companies provide term insurance with combinations of the three main factor keys of life insurance. Term life insurance is purely a death benefit. Cheap life insurance option is also available with different insurance firms with minimal premium rates are larger benefits.
Filed by at 6:41 am under General
No Comments