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Many people assume that life insurance policies will in most cases cover them for funeral expenses. However, this is not necessarily true. In fact, the policyholder may choose to exclude funeral costs from being covered by the policy. As a result, the funeral expense coverage will not typically be included in the life insurance policy. Conversely, some life insurance policies offer coverage in the event of a policyholder's death through no fault of their own.There are various types of policies that will pay out upon the death of a policyholder. The two most common types are named and contract. A named policy will provide that the beneficiary will be given cash or another form of monetary benefit upon the policyholder's death. This can be done without having to give any notice whatsoever to the insurance company. Another advantage of this type of policy is that the beneficiary will usually only receive the payout if they ask for it.Another type of policy is a contract policy. This differs from a named policy in that it will specify what must be stated in order for the beneficiary to be paid out. However, many of the stipulations in the contract policy may include an allowance for expenses not actually named in the policy. Because of this flexibility, contracts are much less expensive to implement than the more standard forms of policies.As with any other kind of policy, there are some limitations as to how the death benefit is paid out. The basic policy will payout the death benefit to the surviving family members of the insured if the insured dies within a specified time after the policy has been granted. If the insured dies prior to the expiry of the policy period then the cash will be paid out to the insured. However, in some situations the policy may pay out to an estate of the insured, which is usually determined on the basis of a review of the probate and estate laws of the state where the policy is being granted.Unlike other types of insurance, it is possible to combine an ordinary policy with an additional policy that pays out on death. The term of these policies can be combined indefinitely until the end of the policy period. Many insurance companies will allow their customers to mix and match policies, so long as they bear in mind that once a policy expires it cannot be renewed. This applies to individuals who already have a policy in force.When looking into taking out a policy the first thing to look at is the benefits that are included within the contractually agreed upon cover. cheap car insurance in lubbock texas will provide an instant online quotation of the total premium that is going to be required. The benefits should be clearly stated within the policy document and there should also be precise definitions as regards the types of risks that are likely to be encountered by the policyholder and family members. These policies will normally take into account any improvements that have been made to the strategies used to manage risk within the family business or organisation.Some life insurance policies will include a provision whereby the policyholder can borrow against the policy and cover up any debts that may arise through to the end of the contract. However this does depend upon the terms and conditions of the policy. It is always advisable to check the small print of any contract to be sure that the policyholder is actually covered for any debts that arise through the lifetime of the policy.An additional type of cover is commonly known as a bonus element. This will work in the same way as an investment element in any other form of insurance. Once a contract has been signed, the policyholder has to wait until the policy is paid in full before being able to claim any bonuses. The nature of bonuses is that they come into play only when the total cash value of the policy exceeds a set amount. For example, if the cash value of the policy is two thousand pounds before the bonus is applied then the policyholder would receive three thousand pounds payout.