Life insurance is a type of insurance that pays out a specified amount of money when the individual named in the policy dies. Life insurance in Huntsville AL is a form of contract between the policy owner and the insurance company, the insurance company agrees to pay the amount specified in the policy to the individual named as the beneficiary, the policyholders responsibility is maintain the premium payments.
What is the purpose of life insurance?
There are many reasons why people take out a life insurance policy; primarily the policy will provide cash to the beneficiary, usually the spouse of the deceased, upon their death. As an example, if the main wage earner in the home should die in the prime of life, the insurance will help the family get over the loss and move on with their own life, the insurance will have immediate benefit as a portion of the proceeds can be applied to covering the cost of the deceased funeral.
Life insurance in Huntsville AL is a form of insurance which is most often taken out and paid for by an individual, however, there are times when an individual may be covered by a group life insurance policy that has been taken out by the individual’s employer; this coverage is given to the employee at no cost. The amount of payout from the group policy can often be increased can often be arranged at a reduced rate in the event the employee wishes to contribute. As this insurance is referred to as “term insurance,” once the individual leaves the company, the insurance is no longer in force.
What does life insurance cost?
The premium that is due on a life insurance policy has a great deal to do with the age of the insured when the policy goes into force. The insurance company takes into account the insured’s age, occupation and health, the underwriter will propose a premium based on this information. It is commonly understood that the older a person is; the more costly will be the insurance. The premium that will be charged a healthy 20 year old non-smoking male will be considerably less than insuring a 65 year old male smoker, in the same vein, a librarian will pay a smaller premium than a race car driver.
Earnest Jordan Insurance Agency brings to you various life insurance coverage options to choose from in Huntsville, AL to suit your needs.
