Life Insurance Calculator

Do you have a life insurance policy? Do you know why it is so important to have a life insurance? A life insurance policy is very important since it provides protection to you and your near and dear ones. People who are employed in risky professions such as firefighters, dare devils, members of the armed forces etc are exposed to grave risk to their lives & therefore require a life cover more than others. Getting your life insured is equivalent to getting it financially assured. The policy is a contract between two parties: The individual who is getting his life insured and the insurer. A life insurance provides a financial cushion to the family members of the deceased.

Some common types of life insurance policies includA Life Insurance policy is a contract between two parties: The insurance company and the insured. It involves a transfer of risk to the life of the insured individual to the insurance company at a cost that is called the premium of the insurance policy. In this way, a life insurance provides a financial cushion to the dependents of the insured person. Under a life insurance policy, the policyholder nominates someone to get the assured sum in case of his death. On the occurrence of such an event, the insurer pays the insured amount to the nominated person mentioned in the insurance contract who may be a family member of the deceased. This amount is irrespective of the total that may have been paid for in the form of insurance premium by the insured.

Casualty insurance is one of the most commonly used types of insurance serving the purpose of losses arising out of direct accidents. One of the most popularly casualty insurance includes auto liability insurance protecting the car owners from losses arising out of car accidents. Marine insurance for protection from losses at sea and shipwrecks are some of the other forms of casualty insurance. It should be noted that insurance forms like property, health, and life insurance are strictly excluded from the definition of casualty insurance. Typically casualty insurance is used to refer to a liability but in some cases insurance providers may also include surety as well. On the other hand liability insurance in most of the cases is part of the general insurance system relating to risk financing. Casualty insurance was very popular among various companies having same risk. These companies came together and formed a group which contributed towards a self-help fund. This fund is used for compensating members ensuring a loss. However, the modern system of insurance relies more upon dedicated insurance providers offering the people protection in turn of premium.

In order to determine the risk factors relating to specified properties, the insurers would often go on to refer to ‘topographical maps’ which denote floodplains and lowlands susceptible to ‘flooding’. Nationwide, just 20% of homes in America which are at the risk of floods have been covered by ‘flood insurance’. Insurers which operate on private basis are not able of insuring against flood peril owing to prevalence of ‘adverse selection’, i.e. purchase of ‘insurance’ by the people who are affected the most by specified flood peril.