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What is the principle of life insurance?
The value for the policy owner is the 'peace of mind' in knowing that the death of the insured person will not result in financial hardship. The foundation of life insurance is the recognition of the value of a human life and the possibility of [ indemnification for the loss of that value. Life-based contracts tend to fall into two major categories: Protection policies – designed to provide a
benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US) are whole life, universal life and variable life policies. ]
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User: What is the principle of life insurance?

Weegy: The value for the policy owner is the 'peace of mind' in knowing that the death of the insured person will not result in financial hardship. The foundation of life insurance is the recognition of the value of a human life and the possibility of [ indemnification for the loss of that value. Life-based contracts tend to fall into two major categories: Protection policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US) are whole life, universal life and variable life policies. ]
Expert answered|Seng|Points 21|

User: What are the benefits of universal life insurance, and what are the possible drawbacks of this type of policy?

Weegy: Many people use life insurance, and in particular cash value life insurance, as a source of benefits to the owner of the policy (as opposed to the death benefit which provides benefit to the beneficiary). [ These benefits include loans, withdrawals, collateral assignments, split dollar agreements, pension funding, and tax planning. Final expenses, such as a funeral, burial, and unpaid medical bills. Income replacement, to provide for surviving spouses and dependent children. Debt coverage, to pay off personal and business debts, such as a home mortgage or business operating loan. Estate liquidity, when an estate has an immediate need for cash to settle federal estate taxes, state inheritance taxes, or unpaid income in respect of decedent (IRD) taxes. Estate replacement, when an insured has donated assets to a charity and wants to replace the value with cash death benefits. Business succession & continuity, for example to fund a cross-purchase or stock redemption buy/sell agreement. ]
Expert answered|Seng|Points 21|

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Asked 9/16/2011 6:04:45 PM
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Explain in writing and with illustrations how a spreadsheet is a good accounting tool to perform bank reconciliations and track cash inflows and outflows.
Weegy: used to. [ Spreadsheets can assist us in many tasks with accuracy and speed. Before we look at some of the uses we can put Spreadsheet software to let's look at a few of its features, which make it unique and useful. The most important features of any spreadsheet are the calculation of figures using arithmetic signs or functions. While not completely unique to spreadsheets, this feature is particularly more visible and word processing software. For example in Microsoft Excel, there is a formula bar for typing or displaying typed formulas. The formula can be inserted in this bar or in a specific cell preceded by an = (equal) sign. You need not insert actual figures, as that would be cumbersome. You simply specify a function such as SUM, AVERAGE, e.t.c and enclose into brackets the beginning column and row numbers and the ending column and row numbers. The use of functions helps to easily perform calculations. Not only would the computation be accurate but it helps to simplify an otherwise complicated calculations process. As we have seen, Spreadsheets have many useful features, which make calculation of figures simpler. Now let's look at some of the uses you can put spreadsheets to: Whether at the office or at home, drawing and maintaining budgets is important. Not only will you be focused and be able to pursue your financial objects clearly with a budget, but you can compare your actual versus planned performance. You can easily prepare a detailed budget with spreadsheets. The calculations can easily be done by entering appropriate formulas and getting the totals and differences. ] (More)
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Asked 9/10/2011 7:55:33 PM
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Why would comparing only the cost of life insurance coverage not be a completely valid approach to determining the best policy?
Weegy: To compare the costs of purchasing a life insurance policy, it is recommended that consumers obtain quotes for similar policies from different companies. Comparing costs only makes sense if you are comparing similar policies. [ Comparison of costs can become increasingly complicated when products include such non-guaranteed features as dividends or additional amounts. There is no guarantee that a company’s past practices with respect to non-guaranteed features will continue. Quotes for various products can be readily obtained from many sources, including local agents and brokers, telephone quote services and the internet. Make sure that you can afford the amount of coverage you intend to purchase. Premiums for some products can change over time and your circumstances i.e. your ability to pay the premiums over an extended period of time may change as well. When comparing the costs of policies be sure to ask if the premiums, death benefit, or cash values can change over time. ] (More)
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Asked 9/16/2011 5:56:07 PM
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What are the benefits of universal life insurance, and what are the possible drawbacks of this type of policy?
Weegy: Universal Life Insurance is permanent insurance that provides protection in case of death, as well as a savings or cash value component. [ The cash value of a universal life policy is based on the amount of premiums you pay, the declared interest crediting rate and the policy charges. Unlike Term Life insurance or Whole Life insurance flexible premium universal life policies permit flexibility in the amount and timing of premium payments (within limits), and they generally offer you the ability to vary the death benefit amount based on your circumstances. However, some policies include a No Lapse Guarantee that guarantees your policy will not lapse for a specific period of time as long as required premium levels are met. Such policies offer less premium and death benefit flexibility. Universal Life Insurance costs less than Whole Life, and offers more flexibility in the timing and amount of premium payments. In general, there are fewer guarantees with regard to cash value or death benefit. Premium payments are flexible. After initial payment, you make additional premium payments at virtually any time and in any amount (subject to certain minimums and maximums). Note: Policies with No Lapse Guarantees have greater restrictions on the amount and timing of premium payments. Your policy continues as long as there is enough cash value to cover monthly insurance charges or if the No Lapse Guarantee is in effect. Cash value earns interest at a rate set periodically by the insurance company and is generally guaranteed not to drop below a certain level. ] (More)
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Asked 9/16/2011 6:15:08 PM
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