Most people purchase insurance policies while not really knowing what really those policies are for. In most probability, they only know life insurance which simply states that a sum of money will be given to their beneficiaries, in the event of their death. Actually, there are a number of variants to life insurance and today, let us discuss in brief, three insurance terms that people should familiarize themselves with. These are Second to Die Life Insurance, Life Settlements and No Medical Exam Life Insurance.
Second to Die Life Insurance refers to a couple (normally a husband and wife), who are covered by a single life insurance policy. In this type of scheme, the payout is only released to the beneficiaries after both of the insured parties have passed away. These type of insurance policy presents some advantages that includes low premium payments.
Life Settlements refer to the act of selling an insurance policy in exchange for a lump sum payment. These should not be confused for another term which is the policy surrender (which gives a much lower payout).
In some instances, people are unable to obtain much needed life insurance since due to inability to undergo a medical exam. These may happen for a lot of valid reasons. In the industry, there now exists a term called No Medical Exam Life Insurance wherein, people who fit certain criteria are qualified for life insurance even in the absence of any medical exam.
Consult your insurance consultants for more details.
