Home | Credit Report | Credit Card | Loan | Insurance | Gas & Electricity | Mobile Phone

CREDIT
Credit Report
Credit Score
Credit Monitoring
Improve Credit Rating
Credit Repair
Identity Fraud
Credit Bureaus
Free Credit Report

CREDIT CARD
Choosing A Card
Credit Card Interest
Balance Transfer
Switching Cards
Cash Back Credit Cards
Airline Mileage Credit Cards
Credit Cards For Bad Credit
What To Do When Applying For A Card

LOAN
Mortgage
Remortgage
Debt Consolidation
Personal Loan
Payday Loan
Bad Credit Loan
Secured Loan
Credit Score and Loan Interest Rates

INSURANCE
Car Insurance
Home Insurance
Life Insurance
Medical Insurance
Dental Insurance
Travel Insurance
Bike Insurance
Pet Insurance

TRAVEL
UK Travel Tips
Major Travel Spots
Airports
Airlines
Hotels
Vacation
Package Deals

GAS & ELECTRICITY
How to switch
What to consider
Energy saving Tips

TELEPHONE
How to switch?
Things to consider
How to find the best deal?

BROADBAND INTERNET
Why and how to switch?
Things to consider
VOIP

MOBILE PHONE
How to buy the right mobile phone
How to switch
How to compare mobile phone tariffs

NEWS
Latest Consumer News



Life Insurance

What is life insurance?

Life insurance refers to the type of insurance where a person is covered for loses incurred to the family members by his death. Generally life insurance is taken up by the person who is the earning member of the family. The person takes a life insurance as the other members of the family are dependent on him and hence the family members are affected in case the person dies. The insured person has to pay a premium for his life insurance. The risk assumed by the insurer is the risk of death of the insured.

Parties to a life insurance

There are generally three parties in a life insurance transaction. There is the insurer, the insured and the owner or the policy holder. In most cases the insured and the policy owner are one and the same person. Let us take an example. If Mr. Peter takes a policy in his name, then he is the owner of the policy and also the insured. But in case Mr. Peterís wife takes a loan in Mr. Peterís name, then Peterís wife is the owner of the policy and Mr. Peter is the insured.

The beneficiary or beneficiaries are the people who will receive the proceeds from the policy in case of the death of the insured. The beneficiary is designated by the owner of the policy at the time of signing the policy agreement. The owner can change the names of the beneficiaries during the agreement, but he cannot do so in case the policy has irrevocable beneficiary designation.

Terms and conditions of the policy

The life insurance policy is a legal contract between the insurer and the insured where all the terms and conditions of policy are mentioned in the agreement. In most cases the policy becomes null in case the insured commits suicide. The insured should have died a natural death or should have died from any kind of accident for his dependents to claim the policy amount. Also it is necessary that the policy holder divulges accurate information in the agreement. Any misrepresentation in the agreement by the owner will nullify the policy. Most of the policies have a contestability period. This is normally a two year period and in case the insured dies within this period then the insurer has every right to access additional important information before it denies or pays the claims.

Purpose of buying the policy

The purpose of buying the life insurance policy is to compensate the family members of the deceased. The policy is said to mature when the insured passes away or the insured attains a particular age. The insurance proceeds from the policy are used to pay the funeral expenses of the deceased and also to replace the deceasedís wages. Life insurance policy is also taken as a retirement plan wherein the insured gets a fixed amount every month after he retires. The owner of the policy must have a legitimate interest for insuring the other personís life. .

 
   



 

Latest News


February 25, 2012
Consumer sentiment edges up to year high

Consumer sentiment edges up to year highArticle from Reuters: NEW YORK | Fri Feb 24, 2012 10:41am EST NEW YORK (Reuters) – Consumer sentiment improved a tad in February to rack up a year high as Americans became more confident about the economy’s resilience, a survey released on Friday showed. The Thomson Reuters/University of Michigan’s [...]

> Read more


APNewsBreak: NY requires life insurance companies to start paying fully on …

APNewsBreak: NY requires life insurance companies to start paying fully on …Article from Washington Post:ALBANY, N.Y. ‚ÄĒ New York regulators on Friday told insurance companies they must pay out fully when members of the military are killed in action as the standard practice, rather than automatically establishing a kind of checking account that provides interest [...]

> Read more

February 24, 2012
Credit union director urges payday loan rate cap

Credit union director urges payday loan rate capArticle from BBC News:24 February 2012 Last updated at 12:07 ET Martin Treadgold thinks that the UK should have a cap on APR rates like many European countries The director of a West Midlands credit union has called on the government to cap the maximum interest rate levied [...]

> Read more


Bailed-out insurance company AIG posts $20 billion profit on a tax-related …

Bailed-out insurance company AIG posts $ 20 billion profit on a tax-related …Article from Washington Post:NEW YORK ‚ÄĒ American International Group, the insurance company that was bailed out by the government in 2008, reported a $ 19.8 billion profit in the fourth quarter of last year, nearly all of it due to a tax-related accounting [...]

> Read more

February 23, 2012
Consumer Comfort in US at Almost the Highest in Four Years

Consumer Comfort in US at Almost the Highest in Four YearsArticle from BusinessWeek:February 23, 2012, 12:09 PM EST Initial Jobless Claims in U.S. Hold at Four-Year Low Jobless Claims in U.S. Unexpectedly Fall to Four-Year Low Margins Widen at U.S. Companies as Wages Lag Behind: Economy Trade Deficit in U.S. Climbed in December to Six-Month [...]

> Read more

 

Home : Credit Report : Credit Card : Loan : Insurance : Travel : Utilities
© 2018. UKConsumerWorld.com. All Rights Reserved.