Recent Examples of life insurance from the Web
Monica asked Luigi to borrow $30,000 from the funds while Fabio Sementilli's life insurance policy was being held up pending the police investigation.
Then there are commercials for the car, home, or life insurance companies that always pay off.
About 20 minutes later, Rivera’s daughter and Morella’s estranged wife, Genevieve, arrive from her work as a billing agent for a life insurance company.
Japanese life insurance companies bought a net 1.05 trillion yen ($9.7 billion) in overseas debt last month, the most since August 2016, according to data from the Ministry of Finance.
Two years ago, John Hancock, through its Vitality program, became the first life insurer to integrate Apple Watch with life insurance, focusing customers on health and fitness rather than just planning for death.
Tune in tonight to watch a man try and resolve the identity crisis raging within, occasionally interrupted by monologues about uranium sales and ads for term life insurance.
At the same time, Hancock has to find ways to sell life insurance that appeal to millennials.
The new agreement also increases firefighters' life insurance policy from $40,000 to $50,000, said Larry Fronk, interim administrator.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'life insurance.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of LIFE INSURANCE
What It Is
Term life insurance is a policy which provides financial coverage during a set amount of time. Often considered the "simplest" form of life insurance, it is best suited for providing coverage or income for a short term and on a limited budget.
How It Works
A term life insurance policy covers the policy-holder up to the age specified in the contract. Should a policy holder die before the term is over, a beneficiary will receive a death benefit. Term life insurance policies may be renewed for a premium at the end of a given term if the policy holder's life should exceed the term.
Term life is less expensive that universal life insurance because it does not build up any equity. You are fully covered during the term of the policy, but you do not receive cash back when the term is over.
To illustrate, suppose Bob has a term life insurance policy that covers him financially in the event of death until the age of 40. Should Bob somehow die before the age of 40, the terms of the policy cover him and pay a financial benefit. If Bob lives past the age of 40, however, his policy will not yield any financial benefit. He must renew the policy for another term under new conditions.
Why It Matters
Term life insurance is generally considered one of the more inexpensive ways to secure a death benefit. Because term life insurance will expire when the policy holder reaches a certain age, it is important that policy-holders ensure that renew their the policy when it expires.
Term life is popular with young families who need protection, but also need to keep prices low. It is often intended for income-replacement needs.
What It Is
How It Works
Universal life insurance is based on whole life insurance. Whole life insurance policies comprise both an insurance and a savings component. The policyholder pays a fixed premium for life. Part of this premium builds up the insurance benefit, while the rest is invested in the savings account. The savings account serves as a tax-deferred resource from which the policyholder may withdraw funds or against which he may take out a loan (in accordance with the terms of the policy). In the event of death, the beneficiary on the policy is awarded the value of the savings account in addition to the accrued death benefit.
Similar to whole life insurance, universal life insurance offers the policyholder greater flexibility with regard to premium, payment, and use of savings and insurance benefits. Unlike whole life insurance, universal life insurance premiums and savings interest rates are variable from month to month. For this reason, universal life policyholders have the option to pay their premiums (in whole or in part) using interest from the associated savings account. However, fluctuations in interest rates and policy premiums pose a risk to policyholders not present in basic whole life insurance. In addition, policyholders, based on their life circumstances, may modify their policies between how the premium amount is allocated between the insurance benefit and savings account. As a result, universal life insurance provides more transparency concerning how the plan is managed as well as the investments that comprise the savings account
Why It Matters
Universal life insurance allows the policyholder to tailor the policy to his individual circumstances to provide the greatest benefit at any stage in life. However, universal life insurance policies do carry higher risk with regard to fluctuations in insurance premiums and interest rates.
What It Is
Variable universal life insurance is a type of life insurance policy that allows the account holder to invest a portion of the premium dollars.
It is not the same as a variable life insurance policy (though it is similar).
How It Works
Variable universal life insurance is a combination of variable life insurance and universal life insurance. Most notably, a variable universal life insurance policy allows you to change your premiums and death benefits (though this will change the coverage amount, of course). Buyers can also make one lump sum payment for their insurance.
A portion of the premium is invested in various instruments -- bonds, mutual funds, etc. The value of those instruments changes daily (hence the name "variable universal life insurance policy"). If the value of these securities rises, insureds can sometimes apply those paper profits toward their premiums (which saves them money). Of course, if the investments don't do well, the premium is still due. If there is enough cash value in the policy to cover the costs of the policy, the policy will stay in force (though some have a required premium for a set number of years to keep the policy in force).
There are two kinds of death benefits in variable universal life policies:fixed death benefits and variable death benefits. The fixed benefit does not increase over time, and cash value builds up against the value of the death benefit, which means the cost of the insurance could decrease over time if the value of the investments are growing. The variable death benefit is equal to the cash value at the time of John's death plus the base death benefit value.
Buyers can increase their death benefits, though they'll likely have to prove that they're in good health. Buyers can also decrease their death benefits, though they may have to pay a surrender charge to do so.
The investments in a variable universal life insurance policy grow tax-deferred, which means that your returns compound at a higher rate than if you had to pay taxes on the gains every year. This can significantly boost the amount that accumulates in the investment accounts.
Why It Matters
Variable universal life insurance policies are regulated as securities, which means your advisor or insurance agent should give you a prospectus that describes the policy in detail, as well as all the investment options. The important thing about this instrument is that the death benefits and value of the investments can fluctuate with the market and with the insured's wishes. In some cases, the policyholder can borrow against the value of the investments in the account. It is important that investors consider the financial stability of the insurer with which they do business; ratings services such as Standard & Poor's and AM Best help.
LIFE INSURANCE Defined for English Language Learners
Definition of life insurance for English Language Learners
: a type of insurance that pays money to the family of someone who has died
legal Definition of life insurance
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