Basic Concept of Life insurance

Life insurance is a contract between an insurance company is the recipient of an insurance; This is where the insurance company that provides insurance that guarantees a specific amount of money the recipient dies, the insurance will provide the recipient's heir. Terms of the agreement, but sometimes deadly illness insurance recipient receives the money. Insurance recipient usually a lump sum or periodic payment amount is specified in the insurance authorities.

Being the recipient of insurance benefits "peace of mind" gains; Because he knows that after his death, his heirs will not fall into money trouble.

This process is used to gain financial benefits after retirement, insurance accepted, and if the terms of such insurance to borrowers carefully noted.


Life insurance is a legal contract and insurance coverage is limited by the agreement. The special terms and conditions, and its liability insurance is written on the responsibility of the recipient; For example, suicide, war, and death because of the insurance authorities of the recipient heir dost insurance is not paid.

Life-based contracts are divided into two main sections:

    Security Policy
    Investment Policy