What is eliminated Life And Casualty Insurance?
"Equity life and casualty insurance" (also called simply "life insurance") is a form of life insurance in which the insurer pays the death benefit to the named beneficiary. The term "equitable" is based on the fact that the policyholder's estate is considered part of the life estate, which is a legal document that predates the birth of any child. In contrast to the life insurance of the past, wherein a person could die without leaving a will, beneficiaries are often given an allowance, dependent upon their earnings and assets. If the insured dies during the lifetime of a beneficiary, his or her estate becomes the beneficiary's security interest. Because of these differences, there are now two forms of life insurance - whole and unsecured.
Whole life insurance is paid on a monthly basis. With this type of coverage, a premium is paid by the insured for the benefit of all beneficiaries. This gives the policyholder a much greater sense of security, as his or her family will be provided for after his or her death. The policyholder may make payments into a trust fund, which will use the money to pay the death benefit, or into an account held by the insurer.
Unsecured premiums are paid only for the death benefit. Once the policyholder has passed away, the insurer may choose to pay the balance of the balance in a lump sum or over time. In this manner, the policyholder retains some of the value of the policy, but does not retain the right to claim the amount from the insurer at a later time. When the insurer makes regular premium payments, the value of the policy decreases slightly. However, if Insureinfoq remains at this level throughout the life of the policy, the value of the policy increases over time.
Both Whole Life and Unsecured policies have a fixed premium that cannot be decreased during the life of the policy. The premiums remain level for the duration of the policy. With this type of coverage, the premium remains for the life of the policy, or until the policyholder dies. If the policyholder outlives the policy, the remaining premium is paid to the beneficiary.
Two distinct groups are defined by these two types of policies. One group pays benefits to named beneficiaries, and the other pays premiums. Named beneficiaries are those people designated in the policy document. These people receive a specific amount of money when they die.
Some Whole Life policies allow the policyholder to select a limited number of beneficiaries. However, all beneficiaries are listed in the policy. A limited beneficiary policy may allow the policyholder to name one beneficiary and dependents, and stipulate that the beneficiary can only receive certain property. In addition, some policies allow the policyholder to change the beneficiaries' names and change the amount of money that the beneficiaries will receive.
Some Whole Life policies may also allow the policyholder to name a beneficiary's bank account. Under this option, the beneficiary's bank account is not considered part of the beneficiaries' estate. Also, in most Whole Life policies, the premiums are tax-deductible. However, the premiums paid by the insurer become part of the beneficiaries' estates. Beneficiaries' estates are any property owned by the beneficiary, including money in trust or brokerage accounts, stocks, bonds, rental properties and investments.
Policy terms vary. Some policies may have limited or no benefit riders. Other policies may provide flexibility in the death benefits and beneficiaries. Some policies may also have redemption rights and pay out a lump sum at the policyholder's death.