Life Insurance |
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Life insurance is a specific category of insurance that covers you in the event of your own death. It usually pays out an insured sum to whomever you choose to nominate in your life insurance policy. In insurance industry parlance, life insurance is also known as assurance, to distinguish it from all the other forms; the difference being that insurance covers events that may happen, and assurance events that will happen. As is the case with all insurance policies, the sum assured is payable in return for the regular payment of monthly premiums. The policy holder sets the sum of money that he or she wishes to be insured for, and premiums are worked out accordingly. Life insurance is usually taken out with the idea of having an amount of money paid out upon the death of the policy holder, but it can also cover other events, like permanent disability. It can also be used as an investment policy, where a maturation date is set, and the insured amount is paid out to the policy holder before he or she actually dies. The former type of life insurance is known as a protection policy, the latter as an investment policy. As a general insurance industry standard, certain events are usually specifically excluded from the cover provided. For example, the policy will not pay out in the event of the policy holder committing suicide, nor should the holder die as a result of an act of war. Life insurance policies are thus clearly designed to cover death as a result of "normal" life events. Insurance companies work on average expected life spans when calculating premiums, and this comes into play when you take out a life insurance policy. The later in life you take out an assurance policy, the higher the premiums will be, as it is calculated that you will pay monthly premiums for a shorter period of time than if you take out the policy when you are younger. This is assuming that the assured amount is the same in both cases. You can also set a finite term for life insurance, known as term life insurance - in this case you are only covered in the event of death during the defined time period. This is a different type of life insurance to so-called permanent life insurance, which continues until eventual death, or until the maturation date is reached. Life Insurance Companies In South AfricaLiberty Life Insurance Products
Momentum Insurance Products
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