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Life insurance and You

Life insurance, much like an Auto Insurance policy believe it or not, is essentially a contractual agreement to support the costs of unexpected or otherwise uncontrollable circumstances in which cause the death, or in some instances permanent-like incapacity of a loved one.

While there are various life-insurance policies available, many are based off of preset criteria set forth in which are found commonly across the board. Some of the variables include location, previous or current illnesses, salary, type of occupation, and even can be based off of your credit score - as to avoid fraudulent claims or attempts to redeem astronomical amounts of money for death or suicide in lieu of accrued lifetime debt. Although life-insurance is a good investment for those that feel that they might be at an age where such a policy would be necessary or advantageous, others lean towards a personal or emergency savings account, as it's more affordable and practical for them - not to mention potentially profitable. Ultimately, what works best for you might not work best for others.

Most life insurance plans fall into two basic policy forms, a protection policy or an investment policy. A protection policy (as described above) will typically pay out a lump-sum amount of money in the event of accidental or otherwise contractually recognized death.

An investment policy on the other hand, while varying in requirements and even progressive rates or less benefits, is essentially designed to accumulate money and interest over time for you that can be accessed at a later date upon agreement - such as for example 20-30 years.

When it comes to payment, individuals are given the ability to assign 'beneficiaries' or person(s) in which whom they wish to receive the 'settlement' or lump sum amount for your unexpected death. In a way, it could be considered a form of 'compensation' for projected or otherwise estimated loss of income to that individual(s) family in the future now that they are deceased in the scenario that such takes place.

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