Life Insurance As An Investment Tool

Yes, it is very much costs you if you are paying premium in Life Insurance policy today but it is much beneficial to you when you get it as a good investment. If you’re thinking of purchasing a life insurance policy, but not yet decided yet which policy prove you a best investment policy term or whole life policy. Sure, a whole life insurance policy allows you to save money. If you want life insurance for life, look into whole life insurance; if you want life insurance for a certain period of time, look into term life insurance. Most of people are interested in is the fact that whole life insurance usually offers fixed premiums; since it covers you for life, you could have fixed premiums for life. Term life insurance doesn’t cover you for life, which isn’t necessarily a bad thing; however, you could end up paying higher premiums upon renewal. Opinions vary from person to person as to whether fixed premiums are enough to make whole life insurance the better life insurance.

Insurance - Investment - Saving

Insurance is a kind of security against loss. In the language of law and economics, is a form of risk management. In a simple word it is a protection against future loss which person got if he is Insured. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. Insurer is the company that sells the insurance. The insurance company is known as the "insurer"; the person who holds the policy is known as the "insured".That Company promise to reimbursement in the case of loss.

What is an insurance policy : An insurance policy is a contract that establishes a binding legal relationship that is regulated by both the common law and legislation. It is a kind of written aggrement between a person and the insurer company for that period of time which is insured by the person.

Types of insurance companies : Insurance companies may be classified as

• Life insurance companies: These are the companies, which sell life insurance, annuities and pensions policies.
• Non-life or general insurance companies: · These companies, which sell other types of insurance. General insurance companies can be further divided into these sub categories.:

1. Standard Lines
2. Excess Lines