Knowing All About Life Insurance
First of all, just what IS life insurance? It is a contract between a private individual (the policy owner or insured) and an insurance company that promises that, in exchange for an agreed upon amount (the premium) by the policy holder, the insurance company will pay an agreed upon amount of money (the benefit) in the event of the death of the insured. They do not have to be the same party, the policy holder can, and often is different than the insured. Someone may purchase insurance on his or her spouse and then one would be the policy owner and the other the insured. A very frequent occurrence is a company that takes out life insurance on its top officers. In this instance, the owner of the insurance is the business.
Needless to say, the insured will not collect on the policy, his beneficiaries do. As a contract, the insurance policy would very clearly delineate all responsibilities, limitations and exclusions. For instance, many life insurance contracts will exclude payment of the death benefit in the case of suicides.
The three main types of insurance are:
-whole life
-term life
-universal life
Both whole life and term life cover the death benefit, but whole life has a certain payout no matter when the insured dies, whereas term life only covers a certain term, as the name would imply. This is for people who are seeking full coverage over their entire life, not only for a certain time. Another advantage of whole life is a cash buildup aspect through dividends. Because of the sureness of payout, whole life is more costly than term life.
Term life insurance, as the name says, provides insurance for a set term. The term of the insurance is spelled out in the policy and only covers the risk, it does not provide any accumulation of cash balance as whole life does. The term may be picked to cover a time when insurance seems most important, for example when one’s children are growing. This is the least expensive type of insurance.
Universal life is totally designed to build a cash value. A cash amount is built from the excess of the amount of the premium over the cost of the insurance. Each month, the premiums earn interest, and the insurance cost is deducted and the balance left to accumulate more interest. The interest rate is fixed by the insurance firm based on a standard like government bonds or a standardized interest rate index.
The cost of the premiums of a life insurance policy reflect how much risk the insurer takes. For example, a 50 year old would have bigger premiums if he applied for insurance than would a 20 year old. Actuarial tables are used to determine the probability of death within a certain period for the different demographic groups.
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About Calgary, Alberta:
Calgary is the largest city in the province of Alberta, in the south of the province. It is located close to the Canadian Rockies, but it is itself in an area of low foothills and plains.
One of Calgary’s greatest claims to fame are the winter sports and ecotourism that draw tourists from around the world. In addition to tourism, the petroleum industry, farming and the high tech industry contribute to the economic health of Calgary.
Calgary is well known to tourists for its famous Calgary Stampede, a large summer festival that draws 1.2 million visitors annually. It is a 20 day event that bills itself as the “Largest Outdoor Show on Earth.”
Calgary was the first Canadian city to host the Olympic Winter Games, in 1988 and as a result of these games, the city has one of the fastest long track speed skating ice rinks in the world.
Alberta has been a province beginning in 1905, but it was really founded and named in 1882. Alberta is an outstandingly beautiful province, with undulating hills, the imposing Rocky Mountains, huge farmlands and deluxe resorts, all vying for the visitor’s attention. The natural riches of Alberta is reflected in its fertile farmlands as well as in its copious gas and oil reserves.
In spite of all these wonderful gifts, many people point to one of the biggest attractions in the province. With 800 stores, and 110 eateries, the West Edmonton Mall holds the place of the largest shopping mall in the world.