Investor Glossary-life insuranceInvestor Glossary-life insuranceInvestor Glossary-life insuranceInvestor Glossary-life insuranceInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Life Insurance

The HTML to link to this page
 

Life insurance is a contract, according to which an insurance company assures a payment of a death benefit in the event of a policy holder's death. As per the life insurance contract, the life insurance policy owner must, in turn, make premium payments in order to receive sustained protection. The general premise of life insurance is to mitigate the financial loss resulted from death by distributing the funds to the beneficiaries of those who died. Life insurance companies implement this using a practice called risk pooling. There are three main types of life insurance contracts: term life insurance issued for a given number of years, whole life insurance designed to provide coverage for the duration of the whole life of the insured, and a combination of the two. In addition to the death benefit, most whole life insurance policies also offer cash value, which accumulates over time. Today many life insurance contracts may be supplemented with various forms of investments, such as mutual funds and annuities.



Rate this life insurance definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: liquidity ratio, annual return, wholly-owned subsidiary, debt service coverage, margin rate, 1031 exchange, covered put, inflation, EBITDA, irrevocable trust, deferred tax, open position, 1035 exchange, ex-dividend date, stock split, labor relations, cancelled check, required rate of return, stock market close, limit order, real GDP, APR, in escrow, quality assurance, FTSE, LIBOR, per diem, FICO score, current ratio, Zero Cost Collar, average price per share, class C shares, deferred revenue, VIX, retained earnings, implied volatility, ex-dividend, dividends payable, option premium, balance sheet, command economy, minority interest, Key Rate Duration, diluted share, phantom income, risk management, 144a, reverse mortgage, 401a


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use