How does life insurance work?
by 
Aravi singh
ANSWERS: 4
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A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death. Typically, life insurance is chosen based on the needs and goals of the owner. Term life insurance generally provides protection for a set period of time, while permanent insurance, such as whole and universal life, provides lifetime coverage. It's important to note that death benefits from all types of life insurance are generally income tax-free.
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Everyone knows that life insurance pays out when persons dies.The idea is protect loved ones from sudden lose of financial support.But there are 3 basic types of life insurance that differ in their details. 1.Term:Maximum coverage per premium,Meets coverage needs for up to 30years 2.Whole life:Fixed premium,lifetime coverage 3.Universal:Lifetime coverage.flexible premium,flexible death benefit.
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Life insurance is a contract between the insurance company(Insurer) and the customer(Insured). In this contract the customer pays premium , and in return the insurance company provides a lump sump amount to the customer's nominee or beneficiaries upon the insureds's death.
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7-14-2017 You bet you're going to die and they bet you're going to live. You hope they win and they charge you for thinking that way.
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