Life insurance and insurance quotes
Life insurance is called a special and complex type of insurance, it is a combination of varieties of personal insurance.
Insurance risks in life insurance:
- death risks
- survival risks
Based on these risks, it can be concluded that life insurance is the insurance of one of the above risks or their insurance in aggregate in different proportions. But in fact, in the contract for life insurance is often added insurance risks related to other types of personal insurance. Thus, it turns out a combined contract, which includes several insurance risks.
Life Insurance Types and quotes
There are two types of life insurance:
- savings insurance
- risk insurance
Accumulative insurance is insurance that is oriented towards the gradual accumulation of funds. Such insurance additionally has a risk component, which provides security in the event of sudden death and other dangerous situations. The insured amount is paid to the relatives of the insured in case of his death or at the expiration of the contract, if the insured is still alive.
Cumulative insurance is characterized by:
long-term insurance, which allows you to slowly form large savings with the help of small regular deposits;
guarantee accrual of income on savings and in special cases the opportunity to receive additional income from investments.
High-risk insurance is insurance that provides financial security for the family of the insured in case of his death. In such contracts is often added insurance against accidents, illness, disability, and so on. Significant savings under the contract are not formed. The insured amount is paid only upon occurrence of the insured event.
What is included in the cost of life insurance?
The cost of a life insurance policy depends on many factors:
- a set of risks for insurance
- insurance conditions
- customer health
The cost of insuring men will be higher, since the lifespan of women is longer. After a man turns forty, he falls into the "risk group" and the price of his insurance rises by about ten percent.
Life insurance rules
When life insurance for a specified period, there are several types of policies:
Renewable policy that allows you to enter into repeated contracts with new terms, but with the same duration.
Convertible policy that allows you to change insurance conditions at your discretion, for example, change the risk insurance to cumulative.
Policy with decreasing coverage. It is designed for people over the age of sixty. After sixty, insurance prices go up, which means insurance premiums are rising. And people who are not willing to increase the cost of insurance can purchase this policy. The amount of contributions under this policy does not change, but the recoverable amount becomes less.
The client determines the maximum insurance amount, which is paid if an insured event has occurred. The amount of the insurance premium to be paid directly depends on its size. Most often, the minimum monthly installment is at least ten dollars.
Insurance fees can be paid every month, every quarter or every year. The duration of the payment of contributions also depends on the type of contract, it can last either the whole term or end several years before the contract is closed. There is also the option of a one-time repayment of the entire amount.
In case of insurance without an exact expiry date, contributions are paid for a specific period. And after the payment period is over, the insurance continues until the death of the insured. But sometimes insurers limit the terms of operation of such insurance, in this case the contract ceases to be valid when the client reaches the age of one hundred years.