Life Insurance
Deeds and Ownership

Is life insurance an asset of the insured?


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Answered 2009-12-27 10:19:28

Yes, if the insured is also the policy owner.


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Insurance might be cover to your life or body or any asset, provided when you have any damage to them, It is financial guarantee the subject that is being insured

Only whole life insurance,not term life.

Very basically, insurance is a contract (called an insurance policy) between one party (the insurance company) and another (the insured). In the case of life insurance, it is a life that is being insured. In return for the periodic payment of money (called a premium) to the insurance company, the insurance company agrees to pay a sum of money when the insured (whose life is insured) dies. The money is generally paid to the person (or sometimes an entity, such as a charity) that is designated in the insurance policy as the beneficiary. The beneficiary is designated by the insured when the insured buys the insurance but can usually be changed up until the time of death.

The Insured of the policy is obviously the Principal in a life insurance contract.

That is definitely correct! The terms of that 'contract' and the obligations on each party will be dependent on the country (and possibly the state), however for term life insurance policies generally the life insured is obligated to pay the premiums for the insured sum and if the life insured has met the application obligations in obtaining the policy, the life insurance company is obligated to pay that sum. In Australia, life insurance contacts between the life insurance company and the life insured is regulated by the Insurance Contracts Act 1984. In the UK, I believe the origins of Life Insurance contracts stem from the Life Assurance Act 1774.

The beneficiary has to have an insurable interest in the insured. The insured has to pass certain qualifications in order to be insured.

The only case where the insured can collect on their life insurance is with a whole life policy. In that instance any interest or dividends are taxable.

The difference between term life insurance and whole life insurance is that a term policy covers the insured for a "term of years" whereas a whole insurance policy covers the insured for the entire life period.

We need to know what he's insured for. If he's insured to drive the car, then yes. If he's insured with life insurance, then no. But normally it's the car that carries the insurance.

The Insured can change the beneficiary on a life insurance contract.

You have to ask the insured. By Law, the Life Insurance company cannot tell you unless they have proof that the Insured is dead. They would be violating the privacy law. *Check with The Center for Life Insurance Disputes.

Insurance is there in the hope that you will never need it! For instance, having your home fully insured would be an asset if your house suffered a fire and was totally gutted. But, if you never suffer a fire gutted house, your insurance payments are outgoing payments that are not recoverable.

"The average amount of life insurance coverage on insured husbands is $235,600 "

State Farm life insurance is owned by an American company so only people in the United States are about to be insured by them. There are other life insurance companies that you can be insured by if you live outside of the United States.

No. It cannot be taxed or attached.

Some low rate life insurance policies are the whole life policies. Life insurance policies are contained in a contract between an insurer and the insured, stating how much would be paid to a designated beneficiary in the event of the death of the insured.

Term life insurance is life insurance protection for a specific number of years. For example, if you buy 10 year level term life insurance and you die within 3 years of buying the policy, your beneficiary would receive the life insurance proceeds, usually free of federal income tax. However, if you stopped paying on your life insurance policy (policy lapse) and your coverage was not "In Force" when you died, there would be no pay-out. Also, if you cancel your term life insurance policy, there would be no pay out. The reasons term life insurance do not pay out at the end include the following: 1. The insured cancelled the policy. 2. The insured stopped paying the insurance premiums. 3. The insured outlived the term of the term life insurance policy, so the coverage expired. 4. The insured did not renewe coverage when the policy expired. 5. The insured did not tell their beneficiaries that they owned life insurance, and so no claim was ever made to get the proceeds from the life insurance policy. I hope that helps! Best of luck to you. 6. A term policy only pays off if the insured dies within the term.

Life insurance is financial protection for survivors or others with an insurable interest in the continued life of the person insured. "Insurable interest" essentially means that the beneficiary has a "stake" (which can be founded on finances, "love and affection", or some other bases) in the continued life of the insured. When the insured dies for reasons that are not excluded by the policy, the beneficiary(ies) receive the life insurance proceeds.

The new owner of a life insurance policy if the original owner dies before the insured.

When a life insurance policy is purchased, the purchaser (usually the insured) designates a primary beneficiary and a contingent beneficiary. The contingent beneficiary gets the proceeds if the primary beneficiary predeceases the insured. The insured can name a new primary beneficiary by contacting the insurance company or the insurance agent. THIS IS ONLY TRUE FOR PURCHASED LIFE POLICIES___ NOT POLICIES THROUGH AN EMPLOYER UNDER ERISA.

The Insurance company which provides insurance coverageunder contractual obligation with the insured, is called the Insurer in insurance parlance.

The beneficiary benefits financially from the life insurance policy by receiving the proceeds of the policy. The beneficiary is the person(s) or entity who is designated by the insured person to receive the proceeds from the life insurance policy upon the death of the insured person. The insured person also benefits from knowing (peac eof mind) they have secured financial protection for the beneficiary in case the insured person dies.

Direct life insurance is easier to purchase, but only provides financial benefits in case of the death of the insured person. No other events are covered by Direct life insurance.

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