Parts of A Life Insurance Policy

Most of the Life Insurance Policies now a day's consists some of these or all components list down. These are some of the major parts of life insurance policies which are briefly described and which often shown in your Policy Contract papers.

•  Death Benefits: Whole sum of payment or series of the payments which are paid to your beneficiaries after your death.
• Cash Value: Interest bearing savings or the investment account are included in permanent life insurance policies. 
• Premiums: Periodic payments like monthly, quarterly, semi annually and annually etc from the insurance policy holder to keep their contracts valid.
• Health Plans: Medical evaluation of an individual is done by an insurance company before providing health plans to any individual. Various kinds of information about individuals is overlooked by company such as Gender, Age, Habits, Occupation, Psychological conditions before insuring mortality rates and determining about rates.
• Rates: According to the insurance coverage and premiums determines the rates. Differs according to the choice of insurance coverage and premium amount policy holder is willing to pay.
• Quotes: Rates estimation that are made before any of the official application procedures, mentioning detail about the cost of policy.
• Riders: An Insurance Company provides extra service known as riders in which policy holder can customize their policy or add various feature according to their requirements.
• Taxes: Mainly Life insurance policy are tax free but other kinds of beneficiaries should pay certain amount of Tax.