Life Insurance

Life Insurance Contractual Provisions

Life insurance policies contain numerous contractual provisions. This section discusses the major contractual provisions that life consumers should understand. Ownership Clause; The owner of a life insurance policy can be the insured, the beneficiary a trust or another party. In most cases, the applicant, insured and owner are the same person. Under the ownership clause, …

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Types of Private Insurers

Participating Whole Life and Policy Dividends

Most whole life policies are participating policies, which means that the policy can and usually does pay annual dividends. All whole life and term policies sold by mutual insurers are participating policies. Some stock insurers also sell participating policies. Participating whole life insurance policy premiums are based on conservative assumptions. Because the insurer’s actual operating …

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Term, Endowment and Whole Life Insurance Full Details

Term Insurance; About 20 percent of the life insurance policies sold in the United States in 2000 were term policies, but these policies represented 42 percent of the amount of death protection purchased. A term policy provides a death benefit over a fixed term, usually one year or five years. Term insurance typically provides pure …

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Life Insurance Product Overview

There are two types of life insurance; term and cash value policies. Term insurance simply provides death protection. If the insured dies during the policy period, the beneficiaries receive the amount of coverage purchased. In contrast, cash value policies bundle death protection and savings accumulation. When purchasing a cash value policies bundle death protection and …

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