Friday, August 28, 2009

What is Life Insurance and How Does It Work?

What exactly if life insurance and how does life insurance work?

Life insurance is protection against the death of an individual person in the form of payment to a beneficiary - usually a family-member, business, or institution.

In exchange for a series of premium payments or a single premium payment, upon the death of the insured person, the face value of a life insurance policy, minus any loans or outstanding interest payments due, is paid to the beneficiary.

The proceeds from a life insurance policy naming an individual as the beneficiary is usually paid free from federal income tax.

Learn how a term life insurance policy works and find out why it's the most affordable type of life insurance plan.

NEW! Here’s How to Buy up to $500,000 of Term Life
Insurance without any Medical Exam,
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