Principles Of Life Insurance
The first and the main principle of life insurance is contracted. No business deal is possible without a contract. An insurance contract comes when one party makes a proposal or offer and the opposite party accepts the proposal.
A contract must be a valid contract. The contract must be fulfilled with insurer consent. The insured must have the interest of the insurance. The contract will be unavailable if there is an absence of insurance. Without any insurable interest, an insurance company will not issue a policy. There is a fixed time period for the purchase of the insurance.
The principle is to claim the losses from the third party. For example, if one person gets injured in a road accident the insurance company will responsible for the losses. And also, sue the third party to recover the company paid as claimed at.
The insured cannot recover more than the losses and the double insurance means the same subject matter with two different companies are under two different policies.
If the result of losses is two or more, it means the proximate cause. This principle is applicable when there is any cause of damage.
Selling your life insurance in the USA
One can sell two types of life insurance in the USA-individual plan or group plan. One can buy an individual life insurance policy from any company agents or brokers. You have to pay commission to company agents or brokers for selling life insurance. Sometimes savings banks or insurance company directly offers life insurance. In this case, the company does not charge sales commission directly, but they collect the commission through the premium.
A growing number of Americans are selling life insurance policies to protect their family members from financial hazards, and to get cash for retirement. Before selling life insurance, you must be concerned about the tax consequences. You must be sure before selling a life insurance that the life insurance is tax-free. You can be concerned with your state to know the licensed insurance companies.
You may buy group life insurance. This type of life insurance comes automatically from your employer. You also buy life insurance from union or trade association. Sometimes some problems arise in this life insurance. Companies or the employer may change the group policy. In this case, you must be sure that you have the ability to change the group policy to an individual policy. Selling insurance policy is a hard task and one should buy individual or group life insurance as his/her demand.
Who is a beneficiary of life insurance
The term beneficiary is related to life insurance. Life insurance mainly for a beneficiary to protect them from financial problems. People select their family members or beloved person as their beneficiary. They Simply select a minor child for their beneficiary. Some steps should need to choose a minor person as the beneficiary. Minor beneficiary needs a guardian to get the death benefits of life insurance. You a have to select a contingent beneficiary when you select one family member as a beneficiary because if the selected member dies who will be the next beneficiary. You can choose all family members or children as your beneficiary, but you have to specify a list of designations of the family members. Before selecting a beneficiary, be sure, you have the option to change the beneficiary name as your life event may change anytime. Divorce, the death of your primary beneficiary or born of a new child may change your decision. If you are unmarried and have no heir at that time you may select an outer public as your beneficiary who will bear your funeral cost.
So, before selling life insurance you must be sure who will be your beneficiary and your beneficiary will get the death benefit easily.
