Insurance: What You Need to Know


Life insurance, also known as life assurance, is a signed contract between an insurer and the policy owner. In a life insurance policy, the insurer agrees to cover the expenses or pay a sum of money in several events happening to an individual such as death, terminal illness of critical illness. On the policy owner’s part, he or she agrees to pay a specified amount in lump sums or at regular intervals. This is also referred to as the policy premium. There are several kinds of conditions in setting the policy premium from different places. In the United States, the insurance policy indicates a stipulated lump sum to be paid on the policy owner.
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