what is life insurance?

Answer 1

It's a bet, between you and the insurance company, whether or not you're going to die while the policy is active.

Answer 2

Life insurance is a kind of business, with a company called a life insurance company. Their deal is that you agree to pay them a certain amount of money every month. The exact amount depends on your age & health. They figure it out to their advantage Their advantage, not your advantage. And then, whenever you die, they promise to pay a certain amount to whomever you name as your "beneficiary." For example, let's say if you're 30 years old and in good health. Then maybe the deal is that you pay $30 a month until you die, and then when you die, then they say they will pay your beneficiary (like your wife or whoever you say) they will pay your beneficiary perhaps $30,000 or whatever the deal is. That's life insurance.

Get the idea? They will pay whatever amount they agreed on. That is, unless their Philadelphia lawyers can figure how they can weasel out of the deal some way --for example, the life ins. company may declare bankruptcy and not pay anyone. Or they may say you misrepresented something on your application, like you forgot to mention you had the flu for 2 days in 1994 ... so, for that reason, they don't have to pay anything, because you defrauded them, you danged criminal, you should go to jail ... but of course they get to keep all your payments. A lot of the life insurance companies offer more complicated deals than that, other deals with different, more fancy names, just as you would expect. That's life insurance. You get the idea. I hope you do get the idea now, don't you?

But the insurance companies tell a different story. They put a different slant on it. You can find their version of it on other people's answers on this site. I wouldn't be surprised if they refer you to some sites put up by the insurance industry. I wouldn't be surprised. Would you? You would? Oh! Oh! Is there any hope for you?

I don't say insurance is useless. It can be a good thing, if you do it right. I merely wish to modestly point out that insurance people are probably some of the biggest godawful crooks that ever walked on this small planet. Why, it's even possible they are no better than real estate people. I dunno. What do you think?

Answer 3

What is life insurance?

Life insurance is protection against the death of an insured individual in the form of payment (the death benefit) to the benficiary named on the insurance policy.

The benficiary is usually a family member or business.

In exchange for a series of premium payments (monthly, quarterly or annually - usually) the face value or amount of life insurance, less any outstanding policy loans, is paid to the beneficiary upon the death of the insured during the policy period.

Basically, you as the insured take out a life insurance policy. You pay the premiums on the policy to keep it "In force". If you die while the life insurance policy is still in force, your beneficiary will receive the death benefit from the life insurance policy. Usually, the life insurance benefit is exempt from federal taxes.

A life insurance policy provides financial protection for your family and loved ones if you die and are no longer there to provide for them.

To learn about term life insurance, visit http://www.term-life-online.com/term-life-insurance.html for information, tips, articles, reviews and quote comparisons.

Answer 4

Wow...some interesting answers...In a nutshell, life insurance is something you may need if you have financial obligations that exceed your resources at death. For example; married couple, three kids death of breadwinner may require life insurance. There are many types, I simply suggest you determine how big the check being delivered to the survivors should be and work form there.

Cheers,

r

Answer 5

There are two types - term and whole. Term is like renting a policy, whole increases in value. Both pay money if you die for certain reasons and bars payment in certain situations. Term is less expensive than whole, but whole in the long run is a better investment.