Health is wealth so that they say and each person should prepare financially and emotionally for the likelihood of any health problems which will come his way at any time within the future. People say the sole things certain in life are taxes and death. Perhaps, illness should even be included therein list because everyone can get sick at any time.

A person will only realize the importance of preparing for the likelihood of health problems when he's already afflicted with an ailment, and he has not prepared for it financially. When that point comes, the diseased person is faced not only with pressing health problems but with unpaid bills also.

New to buying life insurance? Learn how it works and what you need to understand to choose your coverage.

A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death.

Typically, life insurance is chosen based on the needs and goals of the owner. Term life insurance generally provides protection for a set period of time, while permanent insurance, such as whole and universal life, provides lifetime coverage. It's important to note that death benefits from all types of life insurance are generally income tax-free.

On a life insurance policy, the insurer, the subscriber, the member, the insured, the life beneficiary, the beneficiary (ies), and the deceased are involved. Find below more information on these speakers.

Depending on the different legal structures of the life insurance policies, subscribers and members will have their identity differ. This distinction will be made between individual and collective contracts.The insurer

There are two main categories of insurance: those covering a natural person and those covering property. But, it is also possible to subscribe several insurance in the same contract. This is called "multi-risk".

The insurance of persons

Personal insurance is intended to cover risks relating to individuals such as personal injury, illness, death or disability.

Definition

Insurance is, by definition, a system that protects an individual, an association or an enterprise against the financial and economic consequences of the occurrence of a particular risk (random event).

The means implemented by the insurance organizations to protect them against this risk is to associate them with a community of people (the insured), who contribute to be able to compensate those among its members who would suffer material damage or in the event of risk realization. Thus, insofar as it is the entire community of insured persons who materially bear the damage suffered by its members struck by the realization of the risk, insurance is a risk management system based on the concept of solidarity.The actors of insurance