Types of Insurance

Life Insurance, Life Insurance Quotes. Life Insurance Policy

Life Insurance Policy is an agreement between the insurance company and the insurer wherein the former pays the later with the accepted amount of money as per the agreement in case of death, accident or serious illness. The insurer pays the insurance company a premium as per the agreed in the legal documents of the insurance policy and in return the insurance company pays back to the insurer either lump sum or in installments. Read about different types of insurance and car insurance coverage.

It is not necessary that the insurer is the sole beneficiary of the insurance policy, in most of the cases the relatives of the insurer / business partners of the insurer have certain interests in the insurance policy. These are known as insurable interests.

Life insurance policy is based on certain conditions for example only the natural happenings like death, accident, however the insurance policy becomes null and void in case of the suicide etc.

The calculations of the rate of interest, premium to be paid by the insurer are based on various factors. One among this is the age of the insurer. More the age of the person, more will be the insurance premium. Second factor is the health of the insurer, if the person is suffering from heart disease or any chronic disease the insurance companies are taking more risk by giving the insurance policy to that insurance and since they are taking more risk thus more premiums would be required in that case. One another factor that is taken into account is the mortality rate of the particular area. In US mortality rate is less or in another words age of death is higher as compared to that in the African countries so the rates / premium is accordingly decided. Read about different types of life insurance.

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