I am a 35 years old male. Most of my acquaintances has invested substantial amount in life insurance policies. I would like to know what exactly a life insurance policy is and what I can gain out of it.

A life insurance policy is a legal agreement drawn between an insurance policyholder and an insurance provider. Under this contract, the policyholder is required pay the insurer a specified sum at regular interval and in return the insurer promises to pay a certain sum to his designated beneficiary in case the insured event takes place while the policy is still in force. 

A policy is extremely useful especially if you are the sole earner of your family. If you unfortunately die, your family can maintain their financial security because of the amount of money that they will receive from the coverage that you have purchased. The primary goal of a life insurance policy is the financial protection of the family by replacing the income lost because of the death of the policy holder. 

Does that mean if I do no not have a family of my own, I do not need to buy the coverage?

No, if you do not have a family or anybody else depended on your income, you do not need the coverage right now; but the question is; are you planning to remain single all your life? If yes, you can indeed do without such policies; but if you plan to have a family later in life, you should get one now. That is because, policy prices increases with age and so it is always better to buy them early in life, while you are still young and healthy. 

However, it is not necessary that life insurance policies should only cover the family of the insured; you can choose anybody as your designated beneficiary. Indeed, many people cover their aged parents or disabled siblings with such policies. Then again, your business firm or some charitable institutions too can also be the beneficiary of your policy. Some again go to the extent of covering their pets with such policies, but that is very rare.

Are all policies same? Or is there in any variation in them?

There are indeed as many types of policies as the underwriters can conceive. However, all of them fall under two broad categories - the temporary policies sold for stipulated years and permanent policies valid for the life of the insured. The term insurance falls under the first category. Generally it is sold for 1/5/10/15/20/25/30. The problem with such policy is that, although thirty years is long enough time, it can still expire before you have been able to settle all your liabilities.

Permanent policies include the universal life insurance policy. This type of policy will insure you from the moment that you agreed on the policy and purchased and will remain in effect until you die. Depending on your needs, this type of policy can even earn you money through its investment option.

 How do I apply for a policy?

The purchase procedure of any life insurance policy always opens with receiving quotes. Earlier you had to visit brokers office for that, but today you can get life insurance quote on line. Indeed, you just need to fill up a quote form and quotes from different carriers will automatically appear on your screen. The next step is to choose one and apply. The application process involves filling up a detailed form; you are required to provide information on your age, gender, body mass index, present and past health condition, family medical history, lifestyle, habits etc. Under traditional plans you are also required to undertake a paramedical test; but if you are willing to pay more you can bypass that.

Nowadays, you can forego the medical examination by choosing a term life insurance no medical exam policy which you can obtain by using the internet.  You can now easily purchase an instant term life insurance policy by visiting an insurance companys website and choosing a life insurance quote on line that will be given by the website. The amount of premiums that you will have to pay will depend on the type of policy, the length of term, and your age.

It is normal for a person to have questions about life insurance policies. It is better to have these questions answered so that people will have a better understanding of what life insurance policies are all about and why they need them.
 
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on instant term life insurance and no medical exam life insurance, visit his site today.