Life Insurance Explained
A method of protecting a family in the event of the death of the Family's bread winner. A benefit will be paid to the beneficiary upon the passing of the insured. There are three participants involved in a life insurance contract. The first is the insured, the second is the insurer, or the insurance company providing the coverage, and the third participant is the Policy Owner of Holder. Typically the insured is also the Policy Owner or Holder. However, there are times where the Beneficiary can purchase the Policy on the Spouse. In this case the Spouse is the insured and the Beneficiary is the Policy Owner. The Policy Owner is the person who pays the premium.

Before searching for life insurance you must know two of the major options available to you.

Term Life Insurance

This Insurance will protect for a limited number of years; expiring without value if the insured survives the stated period, which may be one or more years but usually is five to twenty years. Periods usually cover the needs for temporary protection.

Whole Life Insurance

As long as scheduled premiums are maintained, this insurance is kept in force for a person's whole life. Premiums are paid back to the policy holder in the form of dividends. Policy holders can use the money from dividends in many ways. It can be used to purchase more insurance or it can be used to pay for term insurance.