The insurance policy or contract is a contract by which the insurer promises to pay benefits to the insured or, on his behalf, to a third party if certain events occur. Subject to the “Fortuity” principle, the event must be uncertain. The uncertainty may be either when the event will occur (for example. B in life insurance, the date of the insured`s death is uncertain) or whether it will occur (for example. B in fire insurance, whether or not there is a fire).  An insurer may change the language or coverage of a policy at the time the contract is renewed. Endorsements and Riders are written provisions that complement, erase or amend the provisions of the original insurance contract. In most countries, the insurer is required to send you a copy of the changes to your policy. It is important that you read all the endorements or riders so that you understand how your policy has changed and whether the policy is still sufficient to meet your needs.
This is a summary of the insurance company`s key promises, and indicates what is covered. In the insurance agreement, the insurer undertakes to do certain things, such as paying losses for guaranteed risks, providing certain services or defending the insured in liability action. There are two basic forms of insurance: In general, the younger and healthier you are, the easier it will be to qualify for life insurance, and the older and less healthy you are, the harder it will be. Some lifestyle choices, such as smoking or risky hobbies such as skydiving, also complicate qualification or lead to higher rates. Insurance contracts are designed to meet specific needs and therefore have many features that are not found in many other types of contracts. As insurance policies are standard forms, they have a language that is similar in a wide range of types of insurance.  Tax evasion – The death benefit of life insurance is generally tax-exempt. Wealthy individuals sometimes buy permanent life insurance from a trust to pay the inheritance tax that comes to their death.
This strategy helps preserve the value of the estate to their heirs. Tax evasion is a law-a compliant strategy to minimize tax debt and should not be confused with tax evasion, which is illegal. Before you apply for life insurance, you need to analyze your financial situation and determine how much it takes to maintain the standard of living of your beneficiaries or meet the needs for which you buy a policy. Most people use life insurance to provide money to beneficiaries who, after the death of the insured, would suffer from a difficult financial situation. However, the tax benefits of life insurance, including the tax increase in the current value, tax-exempt dividends and tax-free death benefits, may provide additional strategic opportunities for the affected.