Life insurance may be divided into two basic classes – term and permanent. Life insurance - Term. Term life insurance (Term Assurance in British English) provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else. See Theory of Decreas ...

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Life insurance, Life insurance - How life insurance works, Life insurance - Insurance vs. assurance, Life insurance - Types of life insurance, Life insurance - Term, Life insurance - Permanent, Life insurance - Taxation of life insurance in the United States, Life insurance - Taxation of life assurance in the United Kingdom, Life insurance - Related life insurance products, Life insurance - History

Read more here: » Life insurance: Encyclopedia II - Life insurance - Types of life insurance

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Insurance, Insurance - Principles of insurance, Insurance - Indemnification, Insurance - How an insurance company makes money, Insurance - Determination of rate structures, Insurance - Gambling analogy, Insurance - History of insurance, Insurance - Types of insurance, Insurance - Types of insurance companies, Insurance - Life insurance and saving, Insurance - Financial viability of insurance companies, Insurance - Controversies, Insurance - Insurance insulates too much, Insurance - Complexity of insurance policy contracts, Insurance - Redlining, Insurance - Health insurance, Insurance - Dental insurance, Insurance - Insurance Patents, Insurance - The insurance industry and rent seeking, Insurance - Insurance in Blackjack, Insurance - Glossary, Insurance - Quote, Insurance - Lists

Read more here: » Insurance: Encyclopedia II - Insurance - Life insurance and saving

Definition and meaning of LIFE INSURANCE :

LIFE INSURANCE: See Ordinary life insurance; Term insurance; Variable life insurance; Whole life insurance

(Source: Insurance Information Institute )

Also see these pages: LIFE INSURANCE , Insurance, Insurance Sitemap, Insurance Dictionary - L

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Insurance began as a way of reducing the risk of traders, as early as 5000 BC in China and 4500 BC in Babylon. Life insurance dates only to ancient Rome; "burial clubs" covered the cost of members' funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century England, originally as insurance for traders: merchants, ship owners and underwriters met to discuss deals at Lloyd's Coffee House, pr ...

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Life insurance, Life insurance - How life insurance works, Life insurance - Insurance vs. assurance, Life insurance - Types of life insurance, Life insurance - Term, Life insurance - Permanent, Life insurance - Taxation of life insurance in the United States, Life insurance - Taxation of life assurance in the United Kingdom, Life insurance - Related life insurance products, Life insurance - History

Read more here: » Life insurance: Encyclopedia II - Life insurance - History

There are three parties in a life insurance transaction: the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. For example, if John Smith buys a policy on his own life, he is both the owner and the insured. But if Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured. Another important person involved is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the in ...

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Life insurance, Life insurance - How life insurance works, Life insurance - Insurance vs. assurance, Life insurance - Types of life insurance, Life insurance - Term, Life insurance - Permanent, Life insurance - Taxation of life insurance in the United States, Life insurance - Taxation of life assurance in the United Kingdom, Life insurance - Related life insurance products, Life insurance - History

Read more here: » Life insurance: Encyclopedia II - Life insurance - How life insurance works

Premiums paid by the policy owner are normally not deductible for federal and state income tax purposes. Proceeds paid by the insurer upon death of the insured are not includable in taxable income for federal and state income tax purposes but may be includable in the estate of the deceased and, therefore, subject to federal and state estate and inheritance (death) tax. Cash value increases within the policy are not subject to income taxes unless certain events occur. For this reason, insurance policies can be a legal and legitimate tax shelter wherein savings ...

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Life insurance, Life insurance - How life insurance works, Life insurance - Insurance vs. assurance, Life insurance - Types of life insurance, Life insurance - Term, Life insurance - Permanent, Life insurance - Taxation of life insurance in the United States, Life insurance - Taxation of life assurance in the United Kingdom, Life insurance - Related life insurance products, Life insurance - History

Read more here: » Life insurance: Encyclopedia II - Life insurance - Taxation of life insurance in the United States

Riders are modifications to the insurance policy added at the same the policy is issued. These riders change the basic policy to provide some feature desired by the policy owner. A common rider is accidental death, which used to be commonly referred to as "double indemnity", which pays twice the amount of the policy face value if death results from accidental causes, as if both a full coverage policy and an accidental death policy were in effect on the insured. Another common rider is premium wai ...

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Life insurance, Life insurance - How life insurance works, Life insurance - Insurance vs. assurance, Life insurance - Types of life insurance, Life insurance - Term, Life insurance - Permanent, Life insurance - Taxation of life insurance in the United States, Life insurance - Taxation of life assurance in the United Kingdom, Life insurance - Related life insurance products, Life insurance - History

Read more here: » Life insurance: Encyclopedia II - Life insurance - Related life insurance products

Definition and meaning of Debit Life Insurance :

Debit Life Insurance: See Industrial Life Insurance. (LI)

(Source: InsWeb)

Also see these pages: Debit Life Insurance , Life Insurance, Life Insurance Sitemap,  Insurance, Insurance Sitemap, Insurance Dictionary - D

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Definition and meaning of Insured or Insured Life :

Insured or Insured Life: The person on whose life the policy is issued.

(Source: The Haskayne School of Business at the University of Calgary )

Also see these pages: Insured or Insured Life , Insurance Business, Insurance Business Sitemap,  Insurance, Insurance Sitemap, Insurance Dictionary - I

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Premiums are not usually allowable against income tax or corporation tax, however qualifying policies issued prior to 14th March 1984 do still attract LAPR (Life Assurance Premium Relief) at 15% (with the net premium being collected from the policyholder). Non-investment life policies do not normally attract either income tax or capital gains tax on claim. If the policy has as investment element such as an endowment policy, whole of life policy or an investmen ...

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Life insurance, Life insurance - How life insurance works, Life insurance - Insurance vs. assurance, Life insurance - Types of life insurance, Life insurance - Term, Life insurance - Permanent, Life insurance - Taxation of life insurance in the United States, Life insurance - Taxation of life assurance in the United Kingdom, Life insurance - Related life insurance products, Life insurance - History

Read more here: » Life insurance: Encyclopedia II - Life insurance - Taxation of life assurance in the United Kingdom

Term life insurance - Theory of decreasing responsibility. Term insurance should be purchased with the Theory of Decreasing responsibility in mind. This theory assumes that the insured realizes all financial responsibilities are temporary and insurance should be purchased to offset those responsibilities. Term life insurance - Buy term invest the difference. Buy term and invest the difference is a concept that grants the insured unlimited flexibility in investing their money and should be used in combinatio ...

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Term life insurance, Term life insurance - Concepts, Term life insurance - Theory of decreasing responsibility, Term life insurance - Buy term invest the difference, Term life insurance - Annual renewable term, Term life insurance - Level term, Term life insurance - Payout likelihood, Term life insurance - Conversion privileges

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Definition and meaning of Life Insurance, Ordinary :

Life Insurance, Ordinary: See Ordinary Life Insurance. (LI)

(Source: InsWeb)

Also see these pages: Life Insurance, Ordinary , Life Insurance, Life Insurance Sitemap,  Insurance, Insurance Sitemap, Insurance Dictionary - L

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Definition and meaning of Life Insurance, Straight :

Life Insurance, Straight: See Ordinary Life Insurance. (LI)

(Source: InsWeb)

Also see these pages: Life Insurance, Straight , Life Insurance, Life Insurance Sitemap,  Insurance, Insurance Sitemap, Insurance Dictionary - L

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Definition and meaning of Life Insurance, Whole Life :

Life Insurance, Whole Life: See Whole Life Insurance. (LI)

(Source: InsWeb)

Also see these pages: Life Insurance, Whole Life , Life Insurance, Life Insurance Sitemap,  Insurance, Insurance Sitemap, Insurance Dictionary - L

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Definition and meaning of Joint Life Insurance :

Joint Life Insurance: See Joint Insurance. (LI)

(Source: InsWeb)

Also see these pages: Joint Life Insurance , Life Insurance, Life Insurance Sitemap,  Insurance, Insurance Sitemap, Insurance Dictionary - J

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Definition and meaning of Individual Life Insurance :

Individual Life Insurance: (1) That type of Life Insurance which covers in one contract usually only one insured. (2) The term used to distinguish this type of Life Insurance from Group Life Insurance. (LI)

(Source: InsWeb)

Also see these pages: Individual Life Insurance , Life Insurance, Life Insurance Sitemap,  Insurance, Insurance Sitemap, Insurance Dictionary - I

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Definition and meaning of Institute of Life Insurance :

Institute of Life Insurance: Formerly an agency of the Life Insurance business responsible for building the image of Life Insurance through a variety of programs. It is now a division of the American Council of Life Insurance. (LI)

(Source: InsWeb)

Also see these pages: Institute of Life Insurance , Life Insurance, Life Insurance Sitemap,  Insurance, Insurance Sitemap, Insurance Dictionary - I

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Definition and meaning of Permanent Life Insurance :

Permanent Life Insurance: A term loosely applied to Life Insurance policy forms other than Group and Term, usually Cash Value Life Insurance, such as endowments and Whole or Ordinary Life policies. (LI)

(Source: InsWeb)

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Definition and meaning of Dependent Life Insurance :

Dependent Life Insurance: A life insurance benefit which is part of a group life insurance contract which provides death protection to the eligible dependents of a covered employee. (LI)

(Source: InsWeb)

Also see these pages: Dependent Life Insurance , Life Insurance, Life Insurance Sitemap,  Insurance, Insurance Sitemap, Insurance Dictionary - D

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Definition and meaning of Industrial Life Insurance :

Industrial Life Insurance: One of the major classes of insurance. It is generally sold in amounts of less than $1,000 by agents who service insureds on debits. The premiums are collected weekly or monthly at the address of the insured. See also Debit. (LI)

(Source: InsWeb)

Also see these pages: Industrial Life Insurance , Life Insurance, Life Insurance Sitemap,  Insurance, Insurance Sitemap, Insurance Dictionary - I

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