Life Is Wonderful To Know Everyday

All life insurance policies, regardless of type, can be divided into 3 parts.

1. Summary- This is the basic agreement of the policy. It includes the name of the insured, the face amount of the policy,the beneficiary's name, and premium amount, as well as the type of policy, any riders(addition to the policy you might have bought), and whether or not the cost of the insurance has been figured on a guaranteed basis or a participating basis.

2. Details- Approximately 10 clauses giving the specifics of the policy's operation, such as due date of premium, value of the policy when you surrender it for either cash or a loan, the amount paid at the time of your death, and options of how your beneficiary can receive that money are included.

3. Application- This is a two fold section that gives personal information about you and lets you make some decisions about how the policy will work. Among typical items covered are what happens in the vent of your suicide. whether you engage in the dangerous sports or occupations, what your rights are under the policy, etc.
As with any legal document, it is important to read and understand what you are purchasing. If you need further information, a good source is the American council of Insurance 1850 K. St. N.
W. Washington, DC 20006