How does a life insurance policy work?
If you're considering life insurance you may be asking yourself just that question.
Don't worry, it's not that confusing, actually once you learn the basics you'll realize it's fairly simple to understand.
First, life insurance is a contract between the insurance company and the owner of the life insurance policy, which is the person who buys the life insurance and opals the premiums. The owner can be the person who is insured by the life insurance.
The owner of the policy pays a premium to the insurance company in return for the insurance company agreeing to pay a death benefit to the chosen beneficiary of the life insurance upon the death of the person who is insured by the policy.
For example, a wife may buy life insurance on her husband, and she pays the premiums as owner of the policy. If her husband dies, the death benefit of the life insurance policy is paid to the wife by the insurance company.
Learn more about how a life insurance policy works.
If you're considering life insurance you may be asking yourself just that question.
Don't worry, it's not that confusing, actually once you learn the basics you'll realize it's fairly simple to understand.
First, life insurance is a contract between the insurance company and the owner of the life insurance policy, which is the person who buys the life insurance and opals the premiums. The owner can be the person who is insured by the life insurance.
The owner of the policy pays a premium to the insurance company in return for the insurance company agreeing to pay a death benefit to the chosen beneficiary of the life insurance upon the death of the person who is insured by the policy.
For example, a wife may buy life insurance on her husband, and she pays the premiums as owner of the policy. If her husband dies, the death benefit of the life insurance policy is paid to the wife by the insurance company.
Learn more about how a life insurance policy works.
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