What is life insurance?(1 point) Responses It helps cover costs for the day-to-day care of people with chronic illnesses, disabilities or disorders. It helps cover costs for the day-to-day care of people with chronic illnesses, disabilities or disorders. It is often sponsored by the employer as part of benefits and provides protection to an employee while they cannot work and therefore earn enough money. It is often sponsored by the employer as part of benefits and provides protection to an employee while they cannot work and therefore earn enough money. It is a contract purchased by the policyholder that commits the insurance company, in exchange for premiums paid, to pay a specified amount of money when the insured passes away. It is a contract purchased by the policyholder that commits the insurance company, in exchange for premiums paid, to pay a specified amount of money when the insured passes away. It is used to protect income in case of illness or injury for people younger than 65 years who have worked for at least 10 years.
The correct response is: It is a contract purchased by the policyholder that commits the insurance company, in exchange for premiums paid, to pay a specified amount of money when the insured passes away.
Life insurance is a contract purchased by the policyholder, usually an individual, that commits an insurance company to pay a specified amount of money when the insured person passes away. The policyholder pays premiums to the insurance company in exchange for this coverage.
To get life insurance, individuals typically need to go through a process that involves the following steps:
1. Assessing insurance needs: Determine the amount of coverage needed, considering factors such as outstanding debts, mortgage, future expenses (e.g., education for children), and any financial support required for dependents.
2. Research and compare policies: Shop around and compare different types of life insurance policies available. These can include term life insurance, whole life insurance, universal life insurance, and more. Each type has its own features, benefits, and costs.
3. Obtain quotes: Contact insurance providers or use online comparison tools to get quotes for the desired coverage. Be sure to provide accurate and complete information to receive accurate quotes.
4. Complete an application: Once a suitable policy is selected, complete the application form provided by the insurance company. The application may require personal information, medical history, and lifestyle-related questions that affect the risk assessment.
5. Underwriting process: The insurance company will evaluate the application and may request additional information if needed. This may include medical records, lab tests, or a medical examination. The underwriting process determines the final price and terms of the policy based on the applicant's risk factors.
6. Review and acceptance: After the underwriting process, the insurance company will review the application and make the decision to accept or reject it. If accepted, the policyholder will receive the official policy document, which outlines the coverage, premiums, and any restrictions or conditions.
7. Paying premiums: Once the policy is active, the policyholder must pay the premiums according to the agreed-upon schedule. Failure to pay premiums may result in the policy being canceled or the coverage being reduced.
It is important to note that life insurance is not solely for people with chronic illnesses, disabilities, or disorders. While it can provide financial support for their day-to-day care, its primary purpose is to provide a lump-sum payment to beneficiaries named by the insured person upon their death.