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Commcercial Insurance in San Jose Life Insurance is defined as a contract between the policy holder and the insurance company, where the life insurance company pays a specific sum to the insured individual's family upon his death. The life insurance sum is paid in exchange for a specific amount of premium. Life is beautiful, but also uncertain. Whatever you do, however smart and hard you work, you are never sure what life has in store for you.
It is therefore important that you do not leave anything to chance, especially ‘life insurance’. As death is the only certain thing in life, apart from taxes, it pays to insure it well in advance.
Life Insurance Definition & Explanation
If you were to go by the dictionary definition, “life insurance†is a financial product that pays you or your dependants a sum of money either after a set period or upon your death as the case may be.
However, if you were to understand the term clearly and also appreciate its importance in your life, consider “life insurance†as a back-up plan for life. Life insurance in its simplest form means being prepared financially, come what may. It ensures that your family and you receive financial support in case you are not able to bring in the much-needed income yourself (maybe due to an accident, retirement, or untimely demise).
In legal terms, life insurance is a contract between an insurance policy holder (insured) and an insurance company (insurer). Under this contract, the insurer promises to pay a pre-decided sum of money (also known as “Sum Assured†or “Cover Amountâ€) upon the death of the insured person or after a certain period.
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