subject: About Life Insurance [print this page] At the present condition of the world people are afraid to go outdoors. Actually we feel it risky at every corner of our modern life. Science has made our lives easy but at the same time we are facing more hazards in our day to day life. The business we do is becoming risky, the food we are taking are more adulterated and we are being affected by more and more diseases day by day. Natural disasters are like a burden over the baggage. Our life expectancy is becoming low and we feel uncertain about our future. And that is the encouraging point for the insurances.
Insurance is a deal of financial compensation to the losses you may face due to environmental or some other accidents. There are a number of insurance companies operating in the world who are ready to sign a deal with you at any time you want and of course under their own rules and regulations. They cannot give you back what you have already lost, but they can compensate that with equivalent monetary value.
Life insurance is a special type of insurance that provides your family from hazardous situation either after your death or at any disaster to your family. There are actually some categories of life insurances. More or less, all of them are intended to serve the same purpose. In discussion of insurances there are some terms which refer to some special entities related to the entire process. First of those are the insurer. In a life insurance, an insurer indicates the person, people or authority who ensures another against the predicted risks. The insurer may be an individual entity or may be a part or agent of another organization. The next term is the insured. An insured is a person or family or another organization that is ensured against the risk. What actually happens there in a life insurance, the insured party is under a risk or wants to accumulate a capital for their predicted bad times in the future, and the insurer agrees to do that job under some specific conditions.
A permanent life insurance is one which remains in action until the insurance policy is matured. If the insured party does not fail to pay the regular premiums, the policy matures in the due time. And the insurer cannot cancel the policy at any cost unless there is any fraud or false information on the data provided by the insured. And in that case, the policy must be cancelled within a fixed time line decided by the law, usually it is two years.
by: Adam Smith
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