What does Life Insurance Mean?
Posted on January 5, 2008
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Typically a life insurance is a contract executed between the insurance provider and the policyholder. In exchange for a regular payment called premium made by the policyholder to the insurance provider, the company in return accede to pay the policyholder or his beneficiary a sum of money either on a regular basis or a lump sum amount.
Events that may be included in the life insurance policy coverage are death, sickness and accidental death. As with any legal binding contract life insurance policies also describe the extent and limitations of the coverage extended to the insured by the insurance company aside from the amount of compensation. There are generally two major categories for life based contracts: Protection Policies and Investment Policies.
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