How are life insurance premiums paid?
Under life insurance contracts, insurance premiums are mainly paid in installments throughout the entire term of the contract (at least 3 years) in such a way that at the time the contract expires, the amount of accumulated funds would be equal to the sum insured under the contract.
This is the accumulation of funds that are stored and managed by the insurance company (insurer) for the period of the contract. Characteristically, under any circumstances, the contributed funds are returned to the insured person or her heirs, moreover, with interest, in contrast to general types of insurance. This means that contributions under life insurance contracts have a pronounced investment character for the insured (insured person).
