Life insurance

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Related to Life insurance: whole life insurance, Term life insurance

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 ?
He said Hartford Life helps facilitate the sale by providing support to stock brokers and financial planners, and by being the one to ask the difficult underwriting questions necessary to purchase life insurance.
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Crosby came to The United States Life Insurance Company as vice president and director of agencies in January 1959 and he was elected to the board of directors and a member of the executive committee in February of that year.
Treasury and Congress set about eliminating deductions for borrowing on life insurance policies, and, with the Tax Reform Act of 1986, interest on aggregate loans in excess of $50,000 on any life insured by a policy owned by a business is not deductible.
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Because of the lack of accounting guidance for the insurance and reinsurance activities of mutual life insurance enterprises, the FASB had asked the AICPA to reactivate and complete its project on that issue.

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