Life insurance is basically a contract between an insurer and an individual insurance holder, in which the insurer agrees to pay out a fixed amount of money to an insurer upon the insured person’s death, for a specified beneficiary. The term life insurance is also used in certain contexts, in the sense that it covers an extended period than insurance on a lifetime basis, such as “investment life insurance.” Insurance companies buy life insurance from insurance companies and pass it on to their customers. Insurance coverage can also be provided by employers to their employees.Visit Abilene life insurance for more details.
The number of beneficiaries under a permanent policy is limited to the maximum number of children named in the policy, and the cost of the policy is based on a portion of the average age of the insured person at the time of application, as opposed to a cost-of-living index.
Permanent life insurance policies are very useful for protecting family finances against high expenses after the insured person has died, as well as for planning various estate expenses and the like. Generally, a large cash value is reserved by the insurer for the benefit of named or assume beneficiaries, allowing them to make tax-deferred payments without becoming taxable until distribution. Premium payments on this kind of policy are generally tax-deductible.
Kim Austin – State Farm Insurance Agent
4542 S 14th St, Abilene, Texas 79605