Life Insurance Basics
June 05, 2008

Life insurance is a contract between a insuring company or entity and the insuree, where the insuring company agrees to pay an amount of money if the insuree is injured or passes away. As exchange for this guarantee of payment upon injury or death, the insuree or whoever owns the policy will regularly pay an amount of money usually known as an insurance premium. In different countries, the beneficiary may be paid at regular intervals such as equal to the insuree's salary, or for different events such as funeral and others required upon insuree's death. Most commonly in the US, however, most insurance companies just pay a lump amount of the previously agreed amount to the beneficiary if the insuree passes away.

There are 2 basics subcategories and divisions of life insurance. They are known as permanent or temporary. There are also subdivisions such as variable or whole life, term, varaible universal, and universal.

The Latest Memo from the IRS regarding Dividends from Life Insurances

Temporary (futures)
Permanent
Whole Life
Universal Life
Limited Payment
Endowments
Accidental Death

To find an appropriate life insurance plan, Use Our Directory.

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