Through whole life insurance you can provide financial protection to your family if you were to die. Whole life insurance contracts are simple. You agree to pay a regular premium and the insurance company agrees to payout an agreed upon sum of money to your beneficiary upon your death.

A whole life insurance contract has three parties. First, there is the insured. This there is the insured under the policy. Secondly, there is the insurer. This is the insurance company who assumes the risk. And thirdly, there is the owner. Although they often are, the owner and insured need not be the same. It is possible for someone to purchase insurance on someone else such as their spouse.

The one purchasing the policy is the owner, and the person whose life the policy is involved with is the insured. In the case where the owner and the insured are not the same individual, premium payments are the responsibility of the owner.

A life insurance contract also has a beneficiary. The beneficiary is the individual receiving the proceeds of the policy in the event of the death of the insured. The owner names the beneficiary. There are two types. One is the irrevocable beneficiary who can not be changed unless the beneficiary gives his or her permission. When the policy is a revocable type, the owner can change it at any time.

There are certain terms and conditions. Certain exclusions may apply, depending on the insured. Almost all policies will not payout for a suicidal death during the first two years of the policy.

During the first two years if death occurs, the company can investigate the circumstances regardless. The company can order an investigation to make sure that the death was not deliberate or possibly homicidal.

The face amount of the policy is the amount that is paid out to the beneficiary. A maturity date is usually set that corresponds either to the date of the death of the insured or a particular date when the insured reaches a certain age. In most cases life insurance is used to provide income protection to the spouse of the insured.

The owner of the policy must have an insurable interest. In other words, the owner of the contract must have a reason for desiring to insure the person’s life, if not the contract is void.

Before paying a claim the whole life insurance company will require proof of death. The most common form of proof is a notarized death certificate. The benefit will be paid out either as a lump sum or as an annuity that is paid out over a particular period of time.