Life insurance is a safety net in case of his death. The person named is the product of an insurance company received compensation for the loss of income as a result of his death. You can think of it as a pathological form of the game of life insurance: if you live longer than expected insurance, then it would "lose" bet. But if he died early, so he would "win" because the insurance company will pay your receiver.
The insurer (or insurers) carefully consider decades of data to try to predict exactly how long they live. Insurers classify individuals according to their size, weight, lifestyle (whether or not to smoke) and medical history (eg, if they have not had serious health complications). determine all these variables, what grade level category of a person in shape. This does not mean that smokers and people who are insured with serious health problems may not have been, it just means that you pay different premiums.
There are two types of life insurance: long-term life and permanent life. Life insurance is generally for a relatively short time, while a permanent life insurance policy is that paid all her life. These payments are usually determined from the date of purchase of the policy. Basically, the younger you at the signing of this type of insurance, be cheaper than your monthly payments. (For a more detailed analysis of these two types of insurance can be found to buy life insurance. Permanent term before)
Objectives and risks
No matter who you are, is one of the benefits of life insurance is peace of mind you. If something happens to you, your recipient a check within days. Life insurance can also all debts or liabilities left are used to pay. The Bank is not limited to writing your mortgage when you die - these payments must be made, or may be liquidated at home. Life insurance can also create a legacy for your heirs, or can be used to leave a legacy, when it comes to making donations to charity.
Most life insurance policies have relatively little risk because insurance usually regulated stable and strong government. The policy of "monetary value", it is permitted to invest their political capital in stocks, bonds or money market. In this policy, the value of your insurance depends on the performance of these funds.
As to buy or sell
There are thousands of brokers and banks in North America. Note that you usually pay a commission to the seller.
to reinforce
Life insurance offers excellent break - concerns softens on what happens your family if you die suddenly.
Life insurance is a relatively low risk investment.
weaken
If you \ long life, your family probably will not be the full value of your policy obtained.
means cash value may fluctuate significantly in the financial markets.
Three main applications
Income protection
Capital appreciation
Deferred tax savings
