Life Insurance Policies

Life Insurance Quote

Life Insurance Quote

Life insurance policies can be defined as legal contracts between an insurer and a policy holder, generally a life insurance policy is taken out by individuals who would like to provide financial compensation in the event they are unable to work in the future or to help provide financial assistance to a designated beneficiary on their death.

Some of the terminology related to life insurance can seem confusing at times, for example – if a person where to buy a policy on their own life, they would be both the insured and owner. If someone where to buy a policy on their partner’s life, they would be the owner whilst their partner would be termed the insured. The policy owner is responsible for payments of the policy premium and there are a number of types of life insurance policies that are available and these can fall into two broader categories namely, Protection policies and Investment policies.

A policy holder may apply for a life insurance policy (Protection Policy) in which they agree to make regular or lump sum payments in return for a cash settlement which will be paid to a designated beneficiary on death of the policy holder. Another type of policy is one that pays out a cash lump sum when a serious illness is diagnosed that leaves the policy holder unable to work.

A primary motive in the decision to purchase a life insurance policy is the peace of mind it provides knowing that death or a serious illness (leaving the policy holder unable to work) will not result in financial hardship for the policy holder or their designated beneficiary – especially in circumstances where the policy holder is the main income generator in a household.

The cost of the insurance policy is based upon a series of calculations worked out by actuaries, mortality tables (for example age, gender and smoking habits are factored into these tables) are one of the main data sets used to determine an applicants life expectancy. The insurer will usually require proof of the insured’s death in the form of a death certificate, if there is a substantial payout, the insurance company may decide to investigate the circumstances surrounding the insured’s death before making a payout to the beneficiary.

It is important to understand what the life insurance policy will offer as well as how much it will cost (the premium). An applicant should ensure that the policy has everything they are looking for, because there are a number of companies providing life insurance services it would be worthwhile to use price comparison sites to shop around for the best Life Insurance Quote to find the most appropriate policy. Whilst an applicant may rely on the information about the life insurance to be advised of by the insurance companies representative it is recommended that the terms and conditions are understood and the applicant is familiar with the policy jargon so they know exactly what they are being covered for.