Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person.
Life insurance is a contract between an insurer (the insurance company) and a policyholder (let’s call him John).
John is a 27-year-old employee who started working at Company X and apparently, he is doing very well. He’s climbing positions very fast, and his prompt success seems to be inevitable. He’s married to Jennie, who just gave birth to baby Ian a couple of months ago.
One day, he’s running late for a very important meeting… so he must drive a little bit faster this time.
5 minutes til’ the meeting starts…. 2 miles away… upfront a yellow-almost-red traffic light… John steps on the accelerator… suddenly losing control… bumping through a light post… losing his life.
Since Jennie is the beneficiary (the person authorized to claim the insurance payout), she is able to move forward with Ian… while she finds a new source of income and recovers from her loss.
The example above is way dramatic, but hey… let’s be honest… it’s self-explanatory and you got the idea. It shows how owning a life insurance policy provides for you and your loved ones… (and why you should not run through almost-red traffic lights)
There are different types of Life insurance for different needs such as:
Term Insurance, Mortgage Life Insurance, Universal Life, Whole Life, Final Expenses, Non-Medical Insurance…
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