Guide to Finance

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Definition Of Life Insurance

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Whole life insurance, also known as “cash-value” insurance is a basic and consistent type of permanent life insurance which remains in effect your entire life at a level premium. This life insurance is a good choice got you if you do not expect your life insurance needs to diminish over time. A portion of your premium goes into a reserve fund called ‘cash value' that builds up over the years your policy is in affect. Your reserve fund is tax-deferred and you can borrow against it, until you withdraw it.



The premiums must generally remain constant over the life of the policy and must be paid periodically according to the amount indicated in the policy. You may also have the option of a single premium -- paying all of the premiums at once with a single lump sum. Your cash values will grow to equal the amount of the death benefit when you turn to age 100.

Although, whole life insurance is very expensive, and if you're on a limited budget, you may not be able to afford all the insurance coverage you actually need. But the plus point is that the death

benefit is guaranteed as long as premiums are met. Also death benefit will never decrease if you don't borrow against it.

Whole life insurance policy's returns will fluctuate with the markets and will usually follow returns

available from other investments like equity mutual funds. However, if you decide to quit your policy, your cash value can be paid in cash or paid-up insurance.

Whole life insurance is most suitable for you, if you want to:

• use it as a tax and estate planning vehicle,

• accumulate cash value for a child's education or retirement,

• pay final expenses,

• provide money for a favorite charity,

• fund a business buy/sell agreement,

• provide key person protection.

Before buying the whole life insurance, you need to think carefully about choosing your level of coverage. Too often people make the mistake of insufficiently covering or even worse, financially overextending themselves. This would be a tragic error with whole life insurance policy because defaulting on premium payments can mean policy cancellation and the loss of your entire investment. So be careful and make sure you:

• pick a life insurance policy that has a guaranteed cash value starting at the very first year,

• choose the one with the highest cash value in the very first year,

• consider "participating" insurance policies which can pay dividends, increasing your policy's value by boosting both the total cash value and the death benefits,

• beware of any insurance policy that levies "surrender charges" when you cancel.

• if you ever need to stop paying premiums, your policy lets you use the accumulated cash value of the life insurance policy to pay the premiums, thus keeping your coverage current.
Definition Of Life Insurance
What is the definition of life? Many scientists and biologists define life as living organisms. They assume or believe that life can only exist in living organisms. This might be a specialized definition of life but we are concerned with the more general view or definition of life. For me this definition is too narrow to define the life of everything that exists, For example, the life of human beings, animals, birds and of course the life of all living organisms, life of earth, stones mountains, because we know that the mountains and earth (continents) moves from one place to another with the passage of time and it is scientifically proved also there may be a chance that something that exists 10 years ago may not exist today. So we need to know the life of every thing that exists either living or non-living The definition I want to give is in generalized form that will define everything. Note that every object in this universe takes time to change or to distinguish. From object we mean that an object could be anything from the very smallest element like atom to a big form like chemicals or solids. This means that the time factor should be included in the definition of life. The new (my) definition of life depends upon two mutually exclusive possibilities this means that either of them should exist and only one at a time.

The assumptions are:

1Rationality.

2Irrationality.

First of all I will explain the concept of rationality and irrationality

1 Rationality:-

Rational means logic or reason. This means that everything that exists should have some logic means there is some reason associated with the existence of a particular object. Keep in mind the concept of infinity, if something is infinite it does not mean that it is irrational. For example, the numbers in mathematics: whole numbers (0,1,2,3……?), even numbers (0,2,4,6,……?), odd numbers (1,3,5,7,…….?) or even counting is infinite. These numbers are infinite and we can go at any extent possible by our human capacity but the thing is that they have some logic in formation, see in the case of whole numbers there is a difference of 1 so to reach the next number we should add 1 to the previous number.

2 Irrationality:-

Irrationality means that something that have no logic in formation or there is no cause for anything that exits. The biggest example of irrationality is metaphysics because metaphysics is that part of science that is not proved by science or science is unable to give any reason for its existence and any person can make any rational or assumption for that particular metaphysical object. Irrationality also means that something that cannot be calculated in terms of mathematics or more general; the science.

As I stated earlier that there will be two different definitions of life in these two different cases. So the definitions are as follows:

1 If there only exits rationality means there is no irrationality:

Definition:-

“Life is defined as the continuous change in time with the random change in state".

Explanation:-

Note that I have included the time factor in the definition of life because as stated earlier we know that time is compulsory in the formation of change in anything, Also we know that time is continues never discrete.

The second part is random change. This is very important. The term random change states that if there exits no irrationality means everything that exits is due to some cause and have some cause then anything’s behavior can be judged or predictable through science. This means that there will exist a set of all possible changes or actions relative to that object. A change being occurred in an object is taken or described in the set of all possibilities. The term random change means that the change in an object is selected from the set of all possible outcomes described for that object.

“Everything is predictable in this universe".

2 If there exits irrationality:

Definition:-

“Life is defined as the continuous change in time with the discrete change in state".

Explanation:-

Note that time is included that is the same as the previous definition but what we have changed is random change to discrete change.

If there exists irrationality means there exists something that have no cause but still exists then we cannot judge or predict an action or in simpler and more concise words we cannot predict the set of all possibilities relative to that object and if the set is incomplete then we cannot judge, predict or estimate the change accurately means that there will exist some or many errors in prediction.

For example:

The biggest examples of this will be human behavior up till mow we are unable to predict the complete human behavior that what will be the next action of a specific person.

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About Author
Both Andrea Schneider & are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Andrea Schneider has sinced written about articles on various topics from Health, Finances and Affiliate Programs. . Andrea Schneider's top article generates over 1900 views. to your Favourites.

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