Life insurance

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Life insurance

An insurance policy that pays a monetary benefit to the insured person's survivors after death.

Life Insurance

An insurance policy where, in exchange for a premium, the insurance company pays a certain benefit to the survivors of the policyholder upon his/her death. Life insurance can help defray costs of the funeral, pay off the estate's debts, and may provide for the survivors' (notably a widow or widower) future. There are two main types of life insurance. Term life insurance lasts only for a certain period of time and pays the death benefit only if the policyholder dies during that time. Whole life insurance lasts as long as the policyholder remains alive and provides a savings component against which the policyholder can borrow under most circumstances.

Life insurance.

Life insurance is a contract you sign with an insurance company, obligating it to pay a death benefit of a certain value to the beneficiaries you name.

In most cases, the payment is made at the time of your death, but certain policies allow you to take a portion of the death benefit if you are terminally ill and need the money to pay for healthcare.

You may select either term or permanent insurance. With a term policy, you are insured for a specific period of time. When the term ends, you must renew the policy for another term or change your coverage. Otherwise, you're no longer insured. With a permanent policy, you can buy coverage for your lifetime.

You pay an annual premium, typically billed monthly or quarterly, for the coverage. The insurer sets the cost, based on your age, health, lifestyle, and other factors. With a permanent policy, your premium is fixed, but with a term policy it typically increases when you renew your coverage to reflect the fact that you're older.

References in periodicals archive ?
If the contract meets the life insurance contract definition, Sec.
Indeed, abstracting from premium risks, the best long-term life insurance contract then does no better than the short-term contract strategy.
A careful matching of client objectives and risk tolerance, along with an understanding of how the product works, may result in a variable annuity or variable life insurance contract that is a suitable and sound choice for your clients.
In contrast, the amount of income recognized on the sale of a life insurance contract is the excess of the amount realized over the basis of the contract.
The PPA, then, allows clients to use money currently held in annuities or life insurance contracts for LTCI premiums, and on a tax-free basis.
2009-14 (IRB 2009-21, May 26, 2009 answers this question: What are B's tax consequences upon receiving death benefits or sales proceeds regarding a term life insurance contract that B purchased for profit in three situations described below.
2) The number of those employees insured under employer-owned life insurance contracts at the end of the year;
The employee invests the bonus into a cash-building life insurance contract, which will serve as a retirement vehicle providing tax-free distributions.
A 412(i) plan is a qualified defined benefit plan funded entirely with annuity and life insurance contracts.
The Internal Revenue Service has taken a more enlightened position in relation to the second possible event where an insured assigns his life insurance contract to the insurance company (as contrasted with the above PLR in which the sale was to a Viatical settlement company) that issued the policy and the accelerated death benefit is paid pursuant to a contract term.
The disadvantages to using a life insurance contract as an investment vehicle is that it requires a long-term commitment.

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