Life Insurance Policy for the Entire Family

Insurance basically means the assurance and life insurance means that the assurance of the cover amount which is given to the family members of the insured after his life. Life insurance is a contract between an insured who is the insurance policy holder and the insurance company. In this life insurance the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

There is a contract which is signed between the insurer and the company and on the basis of the contract the policy holder is supposed to pay some amount of premium which is decided by the company as per the amount for which the person is insured for. The premium amount is paid at the regular interval which is also decided by the company and when there is a sudden death of the policy holder the amount which the policy holder was insured for is given to their family whose name is nominated in the contract which is signed by policy holder at the time of taking the insurance.

There are many things which are seen and mentioned before signing the contract. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum which is decided as per the contact. Other expenses (such as funeral expenses) are also sometimes included in the benefits.

Life policies are legal contracts and the terms of the contract describe the limitations of the insured event so a person should make sure to go through the entire contract and be clear if there is any doubt. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion. Find more information click here at  life insurance policy.