subject: What is Death Life Insurance? [print this page] What is Death Life Insurance?
Life insurance and death life insurance can be considered two very different types of coverage. It is a good idea to have both types of insurance because they cover two distinct types of issues. So how does one know the different between the two and which is the more important coverage for them? The following illustrates how the two insurance types vary and what they cover:
Death Insurance This is insurance that is also called accidental death and is only paid if the person passes away because of an accident, injury or illness. It does not cover death due to natural causes and old age. Some policies also cover dismemberment if that is added to the policy. This means that if any limb is lost due to an accident or illness, the insurance pays out to the beneficiary. Each limb has a different amount that is collected if it removed from the body. In the event of death, the entire amount of the policy is paid off and can be used for funeral expenses or other death related expenditures. This is a great policy for those who are younger and who are more likely to pass away from causes that are considered other than natural.
Life Insurance There are two basic types of life insurance; term and whole life. The differences between the two are distinct and can mean the difference between which one is chosen. Term life is only payable during the length of the insurance policy. This is the type that many who are considered uninsurable would qualify for. The time limit of the policy is set up by the insurance company and the insured pays their premiums monthly for the time limit. After the limit is over, there is no principal that can be used for other issues and a new policy must be written with new terms. Whole life offers life insurance no matter what and is more of an investment. The amount that is paid in can be borrowed against or cashed out once the policy has matured. In the event of any type of death, this policy pays the beneficiaries to help with paying for funeral and burial expenses.
As has been illustrated, there is a huge difference between the death and life insurance and it's important to learn the facts when choosing your insurance policy. Both types of insurance are important and can be purchased at the same time. Insurance is important and should be purchased before there is a true need for it so it's never too late or too early to start planning.
welcome to Insurances.net (https://www.insurances.net)
