If you are considering the purchase of life insurance you may be wondering what life insurance coverage actually means.
Life insurance is a contract between the insurance company and the owner of the life insurance policy.
The owner agrees to pay a certain amount of money to the insurer on a regular basis, and in return for the premium payments, the insurer agrees to pay out a death benefit to the beneficiary of the life insurance policy upon the death of the insured person, subject to the terms, conditions, and exclusions stated in the life insurance contract (policy).
The insured person is the person who's life is insured by the life insurance policy.
The owner of the life insurance policy may be the insured, or someone else.
The owner of the life insurance policy selects the beneficiary or beneficiaries of the life insurance policy.
For example, the owner of the life insurance policy may be the husband, the insured may be the wife, and the beneficiaries may be the husband and the children of the family.
Here's how to
learn more about what life insurance coverage means.
