Life insurance is a contract between an individual and an insurance company, wherein the latter agrees to provide a predetermined amount of money to the identified beneficiaries upon the death of the former. People get life insurance for different reasons. First, it is a way of providing the policy holder’s family the means to cover the financial burden brought about by his or her demise. Another reason is because some people see it as a good investment as certain policy types allow for a cash buildup which can be used during the course of the policy. The cost for these policies differ from person to person. This is because the would-be policy holder’s age, health status, and usual activities are usually taken into consideration. For example, if a young professional with no known vices or health issues and a race car driver of the same age who smokes apply for the same policy, the former will be paying a smaller premium than the other. There are different kinds of life insurance benefits. But they usually fall under two broad categories which are permanent and term life insurance policies. Premiums are more expensive for the former because part of it is [...]
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