life insurance umbrella
We will respond in a simple and use a couple of examples to clarify. Life insurance is any product that pays financial gain or action by an incident in the life of a person. Let's use car insurance as an example for clarity.
Car insurance comes in many forms different. It pays a benefit only if you completely destroy a vehicle. There is no coverage for theft, fire, vandalism, collision damage, damage to glass, replacement rental car, etc, etc. You are starting to get the picture. It's all car insurance as it pays benefits in relation to a car. The cost and benefits of "car" insurance depends on the features you choose.
Another good example is the house insurance. Think about it. You can insure against specific incidents, fire, theft, flood, sewer backup, responsibility, tenants packages, paid content, etc, etc. It is all "home" insurance, but there are many facets to it. One of the financial benefits in the case of an event in conjunction with a house. Once more, it's all house insurance, but costs and benefits of a home insurance policy really depends on the features you choose for yourself.
To return to the life insurance and talk about it. There are many different types of "life insurance a person can choose to have. People believe that the life insurance as a product that pays a cash benefit in case of death of a person. That is correct and the basis of how it all began. Now, however, we have a Permanent insurance, long-term insurance, universal life insurance, life insurance limited pay, first to die life insurance last to die life insurance, etc. and all these types of payment of a benefit when someone dies.
Insurance has changed. A person can receive disability benefits to pay income must be a person unable to work when you are incapacitated by illness or injury. You can get a critical illness plan that pays a benefit for the diagnosis of a disease such as cancer, or a payment for an incident like a stroke. Everything falls under the umbrella of life insurance because benefits are paid in relation to the life of a person.
Today, many more products such as travel insurance, long term care, group insurance, health and dental benefits, etc. Also fall into the category of life insurance.
So, in short, life insurance is an insurance program you pay a financial benefit for an incident or event that may occur in a person's life.
Look for future articles that expand on all these products individual.
John Kovats, CLU
About the Author:
John Kovats is a Life Insurance Advisor for over 25 years. He also specializes in Travel Insurance and Group Insurance.
Article Source: ArticlesBase.com – What the heck is life insurance anyway?
