Define Life Insurance in Your Own Words

Posted by Grace under Insurance on March 7, 2016

How do you define life insurance in your own words? Here in InvestmentTotal.com, we educate our readers about personal finance. We teach the readers to buy life insurance and health insurance before they dive in investing. Life insurance is very important for every human lives. I believe this statement is true.

You don’t know the true importance of your insurance policy until you realize you really need it. Every family has a “breadwinner”. If you are the breadwinner of your family, you should buy a life insurance.

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Define Life Insurance Today

Every family members are getting financially supports from the breadwinner. If a breadwinner dies, the whole family members may suffer huge loss – financial trouble.

If the breadwinner died but he is insured, the beneficiaries (spouse and kids) may receive benefits. In life insurance, the word benefits means “a monetary sum payable by the insurance company to a claimant assignee, or beneficiary”. This means the beneficiaries will receive specific amount of money from the insurance company.

Define Life Insurance Company

Insurance company is the place where an individual could buy a life insurance and pay insurance premium to maintain the validity of insurance policy. An insurance policy is a document and agreement to use by the beneficiaries when filing a claim. The beneficiaries can only file a claim if the insured dies. It is necessary to provide documents not just the insurance policy but other documents related to the death of the insured.

Therefore, a life insurance simply means a “financial protection for the whole family”. What about you? How do you define “life insurance”? Please share your thoughts using the comment box. Thank you!

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