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 ?
For example, living benefits might be treated as proceeds from a life insurance contract (and receive tax treatment under Secs.
As property, policyowners can transfer their life insurance contracts to other persons or entities.
Most recently, in 2009, the Service issued Revenue Ruling 2009-13 (below), which provides definitive guidance to policyholders who surrender or sell their life insurance contracts in life settlement transactions.
Although you can ' 1035' life insurance proceeds into an annuity [with an LTCI rider], you can't swim upstream and '1035' an annuity into a life insurance contract," Burkle said.
1, Year 1, individual A entered in a life insurance contract with cash value.
Under IRC [section] 60391, every policyholder owning one or more employer-owned life insurance contracts issued after Aug.
This feature is contained, for example, in level premium whole life insurance contracts in the U.
Aiful said it reached its decision taking into consideration various factors, including views on whether or not it is necessary to buy group life insurance contracts and cost factors.
A 412(i) plan is a qualified defined benefit plan funded entirely with annuity and life insurance contracts.
The agreement covers the buy out by RBC of Business Men's Assurance Company of America (BMA), which has about 150,000 life insurance contracts as well as the infrastructure to create variable capital insurance products, said Banque Royale, the private bank in Canada with the most assets and capital.
In addition, the presence of a life insurance policy requires consideration of whether the FLP transaction would be considered by the IRS to violate the prohibition against IRAs investing in life insurance contracts.

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