Life insurance in America is one of the most important types of insurance, as it covers the heirs of the insured with insurance coverage, and people’s insurance provides protection for people and those who support them financially from various dangers that lead to a reduction or absence of a person’s ability to work and produce.
Life insurance in America
Life insurance policies in America cover the accidents of reaching a young age and also cover the accidents of short life, and also cover those accidents that occur to people in their field of life such as marriage, entering a university, reaching a specific age, the death of the wife, the death of the husband, or other life accidents.
Life Insurance Policies Defined Value Policies
All life insurance policies are considered as fixed-value documents. Therefore, the life insurance policy is not subject to the principle of compensation, and therefore the insurer or group of insured pays the amount of insurance “or sums” to the beneficiary specified in the contract when presenting evidence of the realization of the insured risk.
The majority of life insurance policies are long-term
The term of life insurance policies may be long until it covers the life of people, and as a result, the term of life insurance is indefinite.
Life insurance policies contain a savings component
The insured pays the cost of insurance in equal periodic premiums, and these premiums are in return for an increased risk year after year, and therefore these premiums are greater than they should be in the first years of the contract and less than what should be in the last years of the contract, so the excess parts are kept in the early years in the form of a provision called The sports allowance is to be used as a return on investment to meet the deficit of the last years of the decade.
The majority of life insurance policies have a liquidation value
Due to the long term of insurance in most life insurance policies, the insured may not be obligated to continue the insurance, i.e. the insured may stop paying the periodic premiums. This does not result in the expiration of the insurance as is the case in most general insurance policies. Rather, we find that life insurance policies in most cases It includes a savings element, and in the event of stopping the payment of periodic installments, he is entitled to liquidate the document and obtain a liquidation value.
Life insurance in America
Life insurance in which the insurance company pays the insurance amount to the heirs, in the event of the death of the insured. This type of insurance is also distinguished by the fact that it is not specified for a specific period, as it is the life period of the insured.
Where the insurance owner pays premiums throughout his life, as the insurance premium begins once contracting until the end of life. This type has the advantage of being suitable, especially for people who have the ability to pay insurance premiums in their advanced lives.
The sum insured is obtained only after the death of the insured.
Insurance companies have tended to make this type of insurance stop at a
certain age, let it be at the age of eighty or the age of ninety.