Life Insurance Quick Overview
Life insurance is a contract in which one party insures a person against loss by the death of another. Insurance on life is a contract whereby the insurer engages to pay a certain amount of money if another dies within the time limited by the policy. The payment of the insurance money depends on the loss of life. Life insurance includes accident insurance, since life is insured under either contract.
Consequently, the life insurance policy contract is between the life insurance company (the insurer) and policy holder (the assured). In return for this coverage or protection, the policy holder pays a premium for an agreed period, depending on the type of policy purchased.
It’s important to note that life insurance is a valued policy. This means that it’s not a contract of indemnity. The interest of the person insured or another person’s life is not susceptible to a financial measurement. You cannot put a price tag on a person’s life. Therefore, the measure of protection is whatever is fixed in the policy. But, the interest of a person insured becomes vulnerable of a particular financial measurement. In this particular case, the interest of the insured creditor is measurable because it’s based on the value of the indebtedness.
Types of Life Insurance
Accident life insurance, sometimes called accidental life insurance or accidental death and dismemberment insurance. It can be a rider on your current policy that has distinctive conditions for paying out in the case of a sudden death that’s caused by an unforeseeable accident. Normally, this payment is in addition to the face amount of the policy that would be paid out if the insured died of natural causes such as old age or an illness contracted after the policy was in force.
The insurance industry defines accidental death as any death strictly due to accident. Therefore, deaths due to deaths from illegal activities such as dealing drugs and getting shot to death, or deaths that result from personal pursuits considered naturally dangerous like shark cage diving will not be covered. Car accidents, airplane crashes and terrorist attacks would be covered.
Dismemberment coverage covers unusual or accidental incidents that normally don’t fall under other major policy riders. This is because, they are accidental in nature or not likely to occur in everyday life. In fact you have a better chance of dying from sickness than you have to dying in an accident. For this reasoning, the premium you pay for this type of coverage are pretty cheap, and it’s rare for an insurance provider to have to pay for any claim in this type of policy.
There are many factors and situations which make the insurance company determines what happened wasn’t an accident. Death must fall within 90 days of an accident for the life insurance benefit and a loss must be considered permanent for the dismemberment benefit. Wars, physical or mental illnesses, and death or dismemberment caused by engaging in criminal acts are all eliminated from benefits. You can get a full benefit of dismemberment when you contact MultInsurance Solutions.
A temporary policy in which the recipient is paid only upon the death of the insured (you) within a specific period (hence the word “Term”). Term insurance is less expensive, with a smaller death benefit. Some do not require medical exams but expect to pay a higher premium since the risk of the insurance company is unknown. Also, term insurance normally does not accumulate cash value but can be purchased on top of your permanent policy. Contact MultInsurance Solutions, to get term insurance coverage.
This provides coverage throughout the lifetime of the insured. This also builds cash value, which is amazing for tax purposes because if you loan out money to yourself using this cash value, there are no tax repercussions. Few policies may have in general withdrawal tax-free. But in most cases, If you withdraw the cash value, you pay the only the taxes on the premiums. MultInsurance Solutions can help you to get permanent insurance.
Variable Life Insurance
Death benefit and cash value changes according to the investment performance from a separate account of investment choices. Generally, insurance policies guarantee the benefit will not fall below a specified minimum. Variable universal life insurance is also known as flexible premium variable life insurance. It’s a combination of variable and universal which has premium or death benefit flexibility as well as investment flexibility. At MultInsurance Solutions, we have got you covered.
Guaranteed Level Term Life
Many insurance companies offer level term life. This type of insurance policy has premiums that are designed to remain level for a period of 5-30 years. Level term life policies have become popular because they are inexpensive and can offer long term coverage. Most level term life insurance policies contain a guarantee of level premiums. But some policies don’t offer such guarantees. Without a guarantee, the insurance company can surprise you by raising your life insurance rate, even during the time in which you expected your premiums to remain level. It’s important to ensure that you understand the terms of any life insurance policy you’re considering. It’s also essential to seek professional advice. Why not contact us at MultInsurance Solutions.
Life insurance combines the low-cost protection of term life with a savings component that’s invested in a tax-deferred account, the cash value of which may be available for a loan to the policy holder. Universal life was formed to offer more flexibility than whole life by allowing the holder to shift money between the insurance and savings components of the policy. Furthermore, the inner workings of the investment process are clearly displayed to the holder, whereas details of whole life investments tend to be scarce. Premiums, which are variable, are broken down by the insurance company into savings and insurance. Therefore, the holder can adjust the proportions of the policy based on external circumstances. We are your one-stop shop for universal life insurance policy.