Life insurance is a contract between the insured and the insurer, the insurer agrees to pay a specific recipient an amount of money ("profit") after the death of the insured person. Depending on the contract, other events such as terminal illness or serious illness may also trigger payment. In return, the insured agrees to a fixed amount (the "premium") paid at regular intervals or in lump sums. In some countries, such as funerals, death expenses included in the premium, but in the United States, the predominant form is a fixed amount of the insured's death will be paid.
The value for the policy owner is the "rest" in the knowledge that the death of the insured person does not translate into financial difficulties.
Life insurance is legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often in the contract to limit the liability of the insurer; Typical examples are claims relating to suicide, fraud, wars, riots and civil unrest.
Contracts of life tend to fall into two broad categories:
* Protection policies - designed to offer a service to a specific event, usually the payment of a lump sum payment. A common form of this design is term insurance.
* Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. The most common (in the U.S.) are whole life, universal life and variable life insurance.
Contracting Parties
There is a difference between the insured and the policy owner (policy holder), although the owner and the insured are often the same person. For example, if Joe buys a policy for your own life, he is the owner and the insured. But if Jane, his wife, Joe buys a life policy, which is the owner and the insured. The policy owner is the guarantee and he or she is the person who will pay for the policy. The insured is a participant in the contract, but not necessarily a party. But "insurable interest" is necessary, an independent party of the restriction of life insurance policies, for example, Jane or Joe. In addition, most companies allow the debtor and the owner to be different, for example, a parent pays a large bonus for a one-child policy, a grandson [or vice versa].
The beneficiary receives the policy death of the insured. The owner designates the beneficiary, but the recipient is not a political party. The owner, beneficiary, unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, the beneficiaries according to changes of beneficiaries on homework, or borrowing of cash value.
In cases where the policy owner is not insured (also known as qui vit celui or CVI), the insurance company tries to limit policy purchases to those who have an "insurable interest" in the CVI. Life insurance, are close relatives and business partners in general, an insurable interest. The "insurable interest" requirement usually demonstrates that the buyer actually suffer any loss if the CVI dies. This requirement prevents individuals for the purchase of purely speculative policies on people waiting to die. Without the requirement of insurable interest may reduce the risk that a buyer CVI murder of insurance benefits to be great. At least in one case, an insurance company that sells a policy to a buyer without an insurable interest (who later murdered the CVI is the product) is responsible for contributing to the death of the victim (Liberty National Life v in court. Weldon, 267 Ala.171 (1957)).
The value for the policy owner is the "rest" in the knowledge that the death of the insured person does not translate into financial difficulties.
Life insurance is legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often in the contract to limit the liability of the insurer; Typical examples are claims relating to suicide, fraud, wars, riots and civil unrest.
Contracts of life tend to fall into two broad categories:
* Protection policies - designed to offer a service to a specific event, usually the payment of a lump sum payment. A common form of this design is term insurance.
* Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. The most common (in the U.S.) are whole life, universal life and variable life insurance.
Contracting Parties
There is a difference between the insured and the policy owner (policy holder), although the owner and the insured are often the same person. For example, if Joe buys a policy for your own life, he is the owner and the insured. But if Jane, his wife, Joe buys a life policy, which is the owner and the insured. The policy owner is the guarantee and he or she is the person who will pay for the policy. The insured is a participant in the contract, but not necessarily a party. But "insurable interest" is necessary, an independent party of the restriction of life insurance policies, for example, Jane or Joe. In addition, most companies allow the debtor and the owner to be different, for example, a parent pays a large bonus for a one-child policy, a grandson [or vice versa].
The beneficiary receives the policy death of the insured. The owner designates the beneficiary, but the recipient is not a political party. The owner, beneficiary, unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, the beneficiaries according to changes of beneficiaries on homework, or borrowing of cash value.
In cases where the policy owner is not insured (also known as qui vit celui or CVI), the insurance company tries to limit policy purchases to those who have an "insurable interest" in the CVI. Life insurance, are close relatives and business partners in general, an insurable interest. The "insurable interest" requirement usually demonstrates that the buyer actually suffer any loss if the CVI dies. This requirement prevents individuals for the purchase of purely speculative policies on people waiting to die. Without the requirement of insurable interest may reduce the risk that a buyer CVI murder of insurance benefits to be great. At least in one case, an insurance company that sells a policy to a buyer without an insurable interest (who later murdered the CVI is the product) is responsible for contributing to the death of the victim (Liberty National Life v in court. Weldon, 267 Ala.171 (1957)).
Tidak ada komentar:
Posting Komentar