Life Insurance in Brandon

Getting life insurance is crucial in protecting and providing for your family or your dependents in the long run. This kind of insurance policy pays an amount to your dependents in the event that you pass away, or are incapacitated so that they are still well-provided for. Here are just a few basic terms that you should understand when getting a life insurance policy.

Life insurance terms

Policy-holder

The policy-holder is the person who bought the policy or insurance plan. This person is the one whom the insurance company will contact for payments for the monthly, quarterly, semi-annual, or annual premium fees. However, it''''s not always that the policy-holder is the one who is insured. One can also take out a life insurance plan on someone else yet pay for the premium themselves. In the event that the other person passes away, the policy-holder will be the one to collect the benefits. Policy-holders who take out insurance plans on themselves assign their families or dependents to receive the benefits in their passing.

Beneficiaries

Those who are named to receive the benefits from a person''''s passing are called beneficiaries. They can be named by the policy-holder when he or she takes out the life insurance plan. However, if the policy-holder takes out the life insurance on another person, he or she can also be considered the beneficiary. The usual beneficiaries are often the immediate family. Business partners and other individuals and even corporations or organizations may also be named beneficiaries subject to the stipulations in the agreement.

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