A Life Insurance Policy provides the payment of the amount of the insurance to the family members on the death of the insured person. There are three parties involved in life insurance policy- the one who is insured, the one who insures it, and the policy holder. Generally the insured person and the policy holder are same person. Clients that are interested in buying life insurance policy can contact a reputed Life Insurance Agent. The responsibilities of Life Insurance Agents include meeting new people, get necessary information about their present position and providing them information about their policy products.

Life Insurance Agents represents insurance company in selling and serving insurance policies. Life Insurance Agents sends out reminder to pay premium or notify clients of any change in rates. There are two kinds of Life Insurance Agents-Independent Life Insurance agents and Direct Life Insurance Agents. Independent Life Insurance agents help the clients by searching the most beneficial price for the most coverage. Independent Life Insurance Agent can represent two or more companies. Generally the commission the agent gets is a percentage of each paid premium plus the fees for serving the policy of insured person. Direct Life Insurance Agents can represent only one company at a time and sells its policy only. Direct Life Insurance Agents are paid same way as Independent Agent- that is by commission and fees.

A long time ago, life insurance was used as a way to help save money for future usage in funeral expenses, and to help the family of the deceased. This was however only limited to “burial club” members in the Roman Empire. But now in the 21st century, life insurance policy covers not only after-death support, but for almost all other expenses as well.

This type of insurance coverage was contemporarily introduced into the public access in the late seventeenth century. Since then, this trend has become very popular, and in fact is one of the most common ways to protect oneself financially.

Common Benefits

Some famous usages of this life insurance policy is to cover death benefits such as funeral costs, mortgages payments, replace the lost income that the deceased’s family misses, to pay estate taxes, retirement benefits, and many more.

How does it Work?

Basically there are three parties in the life insurance policy agreement; the insurer or the insurance company, the insured individual, and the beneficiary. Normally the insured individual and the policyholder are the same person, but the important party to the contract is the beneficiary, who would receive the insurance proceeds after the death of the insured party.
Under a life insurance policy, the insured party pays a regular premium to the insurer or the company, in exchange for a guarantee of specified insurance proceeds payable to their family or the nearest kin upon his or her death.
Varieties

Life insurance policy is generally divided into two different classes; term life insurance and permanent life insurance.

Term life insurance is the basic form of life insurance policy. The word ‘term’ would clearly explain this policy’s function; to provide coverage for a certain period of time, such as 5, 10, 20 or even 30 years as specified by the insured. This policy protects the family as well as the insured party by providing money that they can invest to replace their salary after their death. In short, this policy is a pure life insurance policy with no cash value account.

Permanent insurance, on the other hand, would remain active till the policy matures. This policy, unlike term life insurance policy, has a cash value account, and generally has a premium payment more than term insurances. There are four types of permanent life insurance policy, which are whole life assurance, universal life assurance, limited pay-off assurance, and the endowment insurance.