Life insurance is when an insurance company is obliged to provide a death benefit to the insured in consideration of the payment of premium that is made by the insured. Life insurance is also called "death insurance" but people find that unappealing since it is like wishing for a loved one to die by paying for it. Despite that, it is still an insurance for death. Basically, it is the economic loss obtained by the death of the person that is being insured.
These economic losses have different forms which are:
- breadwinners whose family depends on their income
- The death of a house mom who does everything at home
- If the child will die leaving the parents with a lot of expenses to pay for
- For the final expenses of an individual is has to go through medical treatments because of a particular illness.
-In cases where the one who dies is the key person of the business, then the business would have to suffer a lot of economic loss. This is known as the "keyman" coverage
The estate planning insurance is where a person needs to pay for his estate taxes in case death befalls him
-If the insured is a businessman and he is unable to pay for a transaction because of his sudden death, then it is the insurance company who will fund for that business transaction which is known as the "buy and sell agreement"
- The accident death insurance is when a person buys an insurance policy that will be able to pay for him in case he dies due to an accident
- Mortgage life insurance is a policy that is able to pay for the mortgage among all others in cases where the insured is dead
Life insurance has been around for quite sometime now that is why its services have been improved. These insurance companies have established a mortality table which enables them to see how long it takes for a typical person to live. You may think that these patterns could be wrong but it is actually quite accurate that is why life insurance companies are able to count on the number of people who are going to die at a certain age. The insurance companies are able to derive all the payments of the insurance policy from these tables and the information that it presents. See the best commercial insurance group here.
The total annual cost of the thousands of coverage is the determining factor of how much you are going to pay for your life insurance.
There has been an increases in the life expectancy now a days since we are already in the contemporary life wherein a lot of modern medicines are created. In the ancient times when modern medicines are not yet available, the premiums in life insurances are extremely high but that is not the case now since there are more ways for people to enhance their lives in order to live longer. Get more details from www.matheniainsurancegroup.com.
Read more here: https://en.wikipedia.org/wiki/General_insurance.