Understand the Types Before You Purchase Life Insurance
How many people actually understand what life insurance is? It is a contract between a private individual (the policy owner or insured) and an insurance company that guarantees 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. The insured may not necessarily have to be the policy holder. For instance, a spouse can buy a policy out and the spouse who took out the policy is the policy owner and the other is the policy insured. It is very common for businesses to take out a policy on employees. The firm owns the policy, but the officer of the company is the insured party.
Needless to say, the insured does not collect on the insurance, his beneficiaries do. Since it is a contract, insurance contracts very specifically spell out all of the limitations, exclusions and liabilities of each entity. Exclusions may apply, such as an exclusion concerning suicide.
The 3 kinds of life insurance are whole, term and universal life.
Whole life is a kind of life insurance that is meant to provide a payout no matter when the insured passes on, as compared to term life, which is for a specific, limited time. People who look at having a lifetime policy, and do not want their premiums to go up choose whole life. One of the biggest benefits is that whole life has a cash accrual. Whole life is more expensive because there is positive guarantee of a payout.
Many people feel they need merely to be covered for a smaller period of time. The term of the coverage is spelled out in the contract and only covers the risk, it does not provide any accumulation of cash value as whole life does. Term life is usually chosen to cover a fixed period of time, for example while children are young. These insurance policies carry the lowest premiums because of the limitation of the coverage.
Universal life insurance is based on a cash accumulation. A cash balance is built from the excess of the amount of the premium over the price of the insurance. The cash value receives interest and after the insurance cost, the balance is credited to a cash account. The interest rate is fixed by the insurance company 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. On this basis, an older applicant will be quoted higher premiums than a younger one. The probability of death is calculated with actuarial tables that delineate risk according to age, health and sex.
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About Regina Saskatchewan:
Regina, Saskatchewan is located in the southern part of the province and is its second largest city as well as its capital. Regina was previously the headquarters of the Northwest Territories, which were comprised of most of Saskatchewan and Alberta. The city was named in 1882 for Queen Victoria, (Regina means queen in Latin) by Princess Louise who was the wife of the then Governor of the Territory.
Regina has no large body of water, so early city planners dammed the Wascana Creek, to create a lake south of the business section of the city and built a 840 foot long bridge over the lake. Wascana Centre is located on this lake, and most of the important buildings in the city are located there. There is also a burgeoning historic center in the old warehouse district.
Regina gained national attention in 1885 during the North West Rebellion when troops were transported on the Canadian Pacific Railway from eastern Canada to Qu’Appelle Station for deployment against the rebellious army of Louis Riel. Riel was tried and hanged in Regina. He was a hated figure in Anglophone Canada, and so Regina was considered a patriotic town.
Saskatchewan province in Canada is a prairie area located almost in the middle of the country, with a population of just over one million, most of whom live in the southern part of the province, primarily in Saskatoon, its largest city, with 223, 923 residents, and its capital, Regina, with 194,971 residents. Saskatchewan gets its name from the Cree word that means “swift flowing river”, meaning the Saskatchewan River. Saskatchewan is one of two Canadian provinces that is landlocked, the other being Alberta; it is bound on the north by the Northwest Territories, and on the south by two states of the United States, Montana and North Dakota. The first permanent European settlement in Saskatchewan was a Hudson Bay Company post at Cumerland House, built in 1774, but Henry Kelsey traveled up the Saskatchewan River in 1690 and before European settlement, the area was populated by many indigenous peoples of North America, including Algonquin, Cree and Sioux tribes. Saskatchewan grew rapidly once the Canadian Pacific Railway was built in the 1880’s, and a government homesteading program that gave willing settlers ¼ square mile of land, with an additional ¼ once a settlement was built; this growth in population led to the Saskatchewan becoming a province in 1905.