Insurance has been said to be the best way to ensure that you are assured of financial security. However, others regard term life assurance standards as the best way to invest in the future. Whatever the definition or angle you may choose to look at, insurance is not really of so much essence.
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To those who may not know what insurance means or entails, then here is a simplified definition:
The act of one party guaranteeing another party compensation upon the occurrence of a named unfortunate event.
The party that guarantees the payment is known as the insurer. The party being guaranteed the compensation is known as the insured. The condition for this agreement is that the insured will have to give something in return. This is the consideration, otherwise known in insurance terms as premium.
Depending on the agreement, the premium may be paid at certain rates on agreed intervals. This is determined by the type of event, which is normally known as the risk in the insurance sector. The risk also needs to be voluntarily occurring. This is to say that its occurrence should not be under any party's control.
The period upon which an insurance cover is taken will determine the category of the cover or the type of cover. This also goes into determining the terms of the insurance cover, including the premium to be paid. It may be a term life insurance or whole life insurance. Therefore the term life insurance rates will differ from those of whole life.