Life Insurance

Life Insurance


Everyone wants security and financial stability for their loved ones, it’s the priority for the bread earner to provide basic necessities during his life and ensure financial support to his family, in case of his demise. That’s where the term life insurance pops into mind, undoubtedly no one wants to think of their death and more importantly their loved ones demise but its one of the sad and harsh realities of life. It may seem like a harsh and mean financial tool but for the ones who lost their family financial head it’s a ray of hope, a last gesture of love and affection from the lost loved one.


The life insurance forms a legal contract between two parties, one the policy owner and one the insurer, though the specifics of the agreement vary from person to person, insurer to insurer and may depend on legal system of the country, but the core system is that the policy owner pays insurer some amount in lump sum or at regular intervals and assigns a beneficiary to whom the insured amount will be transferred upon policy owner’s death, terminal illness or critical illness.   


There are different types of life insurance and there are also some specific terms used with which one should be familiar in order to understand this concept.


First one is term life insurance; it provides life insurance coverage for a specified term, for a specified amount of return. It has three main components; face amount, premium and term, duration of the insurance. Different insurance companies play with these three components and come up with their own insurance policies. Various variations of this ‘term insurance’ are Level, Annual Renewable, and mortgage life insurance.


Then there is Permanent Life Insurance; it remains intact unless the policy matures or the owner of the policy fails to pay the premium. Some famous variations of this policy are whole life insurance, Universal Life Insurance and Limited Pay.


A very common term used in life insurance is life insurance quote, in which the cost of insurance is measured through use of different questions regarding age, gender, smoking habits and family history etc and different formulas and tables, depending on regulations followed by insurer. These quotes will be different for different types of life insurance and will be termed accordingly like term life insurance quotes are used specifically for term life insurance only, low cost life insurance quotes is used for low cost and free life insurance quotes for free life insurance respectively. 


Another common term is life insurance settlement which refers to any form of settlement or agreement reached between the two parties, insurer and the policy owner, in case of successful completion of policy or in case if any party wants to leave the contract and walk away.


Nowadays with the advancement in technology, online banking and virtual banking there are different forms of insurance available on the net through online life insurance. Furthermore there are different cheap life insurances available through internet and through other financial institutes that are targeting price savvy customers with limited budgets but the three components face value, premium and the term may be reduced in order to create this policy. But since the main form of life insurance policy is the Term life insurance as it acts as an umbrella policy for other policies so the proper use of cheap life insurance is as cheap term insurance policy.