Life insurance, in Valley Springs, is defined as a contract between the the insurer, & the insured according to which, the insurer pays a designated beneficiary or nominee a premium upon the demise of the insured person. Other events such as terminal illness or critical illness may also fall under the coverage of the policy. In return, the policy has to pay a fixed amount as per the deal, during his lifetime.
Life insurance policies in Valley Springs are the legal contracts & possess limitations of the insured events. Often specific exclusions are written into the contract to limit the insurer’s liability. Life-based contracts are generally classified as:
Protection policies that are designed to provide monetary benefits in a specified event & Investment policies that mainly aim at facilitating the growth of capital by regular or single premiums. Life insurance may be of two basic types – temporary or term insurance and permanent insurance, which again has four subtypes –universal, whole life, limited pay and endowment life insurance.
Term assurance is a temporary insurance that provides life insurance coverage for a specified term of years against a specified premium. Accidental death is a sub-type of temporary insurance, which provides coverage to the insured in case of his death due to an accident and not any kind of health problem or suicide.
Permanent life insurance is life insurance that remains valid until the maturation of the policy due to failing of the owner to pay the premium.
Universal life insurance is a latest insurance product that intends to provide permanent insurance coverage with greater flexibility in premium payment and the potential for greater growth of cash values.
Whole life insurance provides guaranteed death benefits, guaranteed cash values, fixed and known annual premiums & non-reducible cash value even in case of mortality charges & other related expenses.
Limited-pay life insurance involves payment of all the premiums over a certain period after which no additional premiums are needed to keep the policy valid.
Endowments are the policies in which at a certain age of the insured, the cash value built up inside the policy, equals the death benefit.