Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person.
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21 Facts About Life insurance
2.
Life insurance was unsuccessful in his attempts at procuring a charter from the government.
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3.
Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived.
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4.
In cases where the policy owner is not the insured, Life insurance companies have sought to limit policy purchases to those with an insurable interest in the CQV.
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5.
The cost of Life insurance is determined using mortality tables calculated by actuaries.
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6.
Life insurance companies in the United States support the Medical Information Bureau, which is a clearing house of information on persons who have applied for life insurance with participating companies in the last seven years.
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7.
Group life insurance is term insurance covering a group of people, usually employees of a company, members of a union or association, or members of a pension or superannuation fund.
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8.
Group life insurance often allows members exiting the group to maintain their coverage by buying individual coverage.
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9.
Permanent life insurance is life insurance that covers the remaining lifetime of the insured.
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10.
Whole life insurance provides lifetime coverage for a set premium amount.
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11.
Universal life insurance is a relatively new insurance product, intended to combine permanent insurance coverage with greater flexibility in premium payments, along with the potential for greater growth of cash values.
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12.
Endowment policy is a life insurance contract designed to pay a lump sum after a specific term or on death.
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13.
Endowments can be cashed in early and the holder then receives the surrender value which is determined by the Life insurance company depending on how long the policy has been running and how much has been paid into it.
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14.
Accidental death insurance is a type of limited life insurance that is designed to cover the insured should they die as a result of an accident.
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15.
Pre-need life insurance policies are limited premium payment, whole life policies that are usually purchased by older applicants, though they are available to everyone.
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16.
Riders are modifications to the Life insurance policy added at the same time the policy is issued.
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17.
Joint life insurance is either term or permanent life insurance that insures two or more persons, with proceeds payable on the death of either.
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18.
Where the life insurance is provided through a superannuation fund, contributions made to fund insurance premiums are tax deductible for self-employed persons and substantially self-employed persons and employers.
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19.
However, where life insurance is held outside of the superannuation environment, the premiums are generally not tax deductible.
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20.
Stranger-originated life insurance or STOLI is a life insurance policy that is held or financed by a person who has no relationship to the insured person.
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21.
Generally, the purpose of life insurance is to provide peace of mind by assuring that financial loss or hardship will be alleviated in the event of the insured person's death.
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