Insurance is a way of distributing risks protection among people. The insurance company creates a pool of financial resources by pooling the premiums paid by all its insured clients. If one of the clients suffers from any risk, he or she is compensated from the pool of premiums created. Life insurance is an investment tool that acts a financial cover. The insured parties agree to pay a particular agreed amount of premiums after a certain regular amount of time. Later the policy with pay a certain amount as the sum of money assured under specific circumstances. The sum assured in a life insurance policy is awarded to cover your financial requirements together with your beneficiaries in case of death or sustaining a certain disability. Life insurance is like a contract whereby a particular party insures someone against loss by the death of another person. The payment of the insurance ends when someone dies. Life insurance also includes accident insurance life insurance policy contract is usually between the policyholder and the Insurdinary life insurance company. The insurance company is also known as the insurer while the person taking this cover is the assured party. To be covered or protected against death or accident risks, the policyholder who is also known as the assured party pays a premium for an agreed amount of time according to the type of policy bought.
It is important to note that life insurance is not a contract of indemnity like other insurance policies. Indemnity contracts refer to insurances in which the loss suffered can be measured in terms of money. Life insurance compensation cannot be measured in this way. Life insurance is a valued policy since a person's life cannot be price-tagged. The measure of indemnity is the amount of money agreed and fixed in the policy. Most of the times, life insurance policies are purchased to cater for savings, investment purposes as well as retirement planning. To get some facts about insurance, go to http://infamous.wikia.com/wiki/Life_Insurance.
For example, an annuity can offer income on yearly basis during your retirement years. Investment-linked plans, whole life, and endowment participating policies in life insurance policies bring together savings, investment aspect as well as insurance protection. Having all these together will cost you more than just purchasing a pure insurance policy. These bundled products are advantageous because they accumulate cash over time and will get paid out when the policy matures. It is about time you think of securing life insurance because it will provide enough security for your dependant in case of untimely death or accident. Get more info.