Happyshort

What is Life Insurance? Life Insurance is contract between us as policy owner and insurance company, where insurance compay agrees to pay a sum of money upon the occurrence of the insured individual’s or individuals’ death or other event, such as terminal illness or critical illness. In return, the policy owner (or policy payer) agrees to pay premium at regular intervals. Premium is amount paid by policy holder or policy owner to the insurer or Life insurance company as stated in the policy date page. Most of Life Insurance, a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy.

Insurance began as a way of reducing the risk of traders, as early as 5000 BC in China and 4500 BC in Babylon. Life insurance dates only to ancient Rome; “burial clubs” covered the cost of members’ funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century England, originally as insurance for traders: merchants, ship owners and underwriters met to discuss deals at Lloyd’s Coffee House, predecessor to the famous Lloyd’s of London. (Source : From wikipedia)

The first insurance company in the United States was formed in Charleston, South Carolina in 1732, but it provided only fire insurance. The sale of life insurance in the U.S. began in the late 1760s. The Presbyterian Synods in Philadelphia and New York created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived. (Source : From wikipedia)

There is a difference between the insured and the policy owner (policy holder), although the owner and the insured are often the same person. For example, if I buys a policy on my own life, I am both the owner and the insured. But if I buy a policy for my wife, I am the owner and my wife is the insured.

Types of life insurance

• Temporary (Term)
  Term life insurance or ‘term assurance’ provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered “pure” insurance, where the premium buys protection in the event of death and nothing else.
• Permanent
  Permanent life insurance is life insurance that remains in force (in-line) until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires OR policies lapse). The policy cannot be canceled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years).
• Whole life coverage
  Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy.
• Limited-pay
  Another type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.

For now, some life insurance company gives more benefit to policy owner :

• Cover serious illness and some life insurance company covered 38 spesific critical illness.
• Combine with investment, so policy owner also can get benefit from his investment at his life insurance.
• Life Insurance covered normal death, death because of illness and accidental death, cover the insured when they pass away due to an accident. Accidents shall mean an unexpecte, external and violent force affecting the insured’s body and causing injury or disability, and include infection of wound due to accident.
• Cover policy owner’s hospital bill if he get illness or accident and must have hospitalisation as an inpatient.
• Cover surgery payment when policy owner get surgery.
• Free of premium if policy owner get accident or illness that caused he can not work.

Today, Life insurance is important thing. We need at least one Life Insurance for protection. Benefit from Life insurance, that we plan for our children future education, handle medical bills, and more. For today, we need Whole Life Insurance that can give more protections, such medical, life protection, plan our children education and more protection. Also we need insurance that give more covered value, like with $1 we can buy $50,000 coverage (waw, that’s great), easy for buy insurance, buy trough website or directly from email, have no waiting period for give protection, maybe also no medical exam before buy life insurance :D.