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Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person.
This is a defined contribution (DC) scheme and is capital-funded. Within the context of the European Union, this supplementary insurance is recognized as the pension system's third pillar. It also encompasses life insurance products offered by private insurers.
Life insurance is a necessity if you have immediate family or others that count on your income. However, choosing a policy that fits your financial goals and is affordable can be challenging.
A basic state pension is a "contribution based" benefit, and depends on an individual's contribution history. For examples, see National Insurance in the UK, or Social Security in the United States of America. Many countries have also put in place a "social pension". These are regular, tax-funded non-contributory cash transfers paid to older ...
The least expensive type of life insurance is usually term life insurance. It provides coverage for a specific period — often 10, 20 or 30 years — and is typically much cheaper than permanent ...
A with-profits policy (Commonwealth) or participating policy is an insurance contract that participates in the profits of a life insurance company. The company is often a mutual life insurance company, or had been one when it began its with-profits product line. Similar arrangements are found in other countries such as those in continental Europe.
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