Life Insurance is a type of insurance paid to the nominee after the death of insured person. It promises reimbursement if any loss happens to the assured person.
Insurance amount will be given to the insured person at the expiration of insurance period. The owner and insured is often the same person, there will be some differences between them in some cases. For instance, if a person buys a policy on his own life, he is the owner and the insured.
But if his wife buys a policy in his name he is the insured and his wife is the owner. The policy owner is responsible to pay for the policy without any fail. Insurable interest can control an unrelated party from taking life insurance on.
The major attractiveness of Life Cover is that it will allow the beneficiaries to receive policy proceeds upon the insured’s death. The owner has to consign nominee, and the nominee is not a part to the policy.
The owner only can change the beneficiaries. Beneficiary is supposed to agree the any beneficiary changes, policy assignments or cash value borrowing with an immutable beneficiary. In life insurance if the policy owner is not the insured, insurance companies seek to limit policy purchases to those who own insurable interest.
Close family members and business partners can have insurable interests. The requirement for insurable interests expresses that the purchaser will actually suffer some losses if the policy owner dies.
Life Insurance quote is calculated with the help of mortality table which are actually calculated by actuaries. The requirement for insurable interest prevents people from benefiting from the purchase of purely exploratory policies on people after death.
In life insurance, the policy becomes null if the insured commits suicide within a specified time. The policy will be nullified if anything is presented wrongly in the application.
source: http://www.lifeinsurance2.ewebsite.com/
