A life insurance proposal is a document presented by an insurance agent to a potential customer where he explains all the terms and conditions associated with a life insurance policy. Life insurance means the insurance company will pay a particular sum of money when the insured person expires or suffers from a terminal illness. All throughout his life, the insured person needs to keep making regular payments or premium to the insurer which is calculated later and given to the insured person’s family upon his death. The proposal may also contain certain additional features about the life insurance, like if it will cover the funeral expenses too or not and so on.

Sample Life Insurance Proposal:

Name of insurance firm: Life Force Insurance Services

Address: 920 Woodland Lane, Ohio

Life insurance proposal prepared on: February 12, 2012

Proposal prepared by: Jim Sanders

Insurance agent, Life Force Insurance Services

Proposal submitted on: February 15, 2012

Proposal signed and approved by: Jonathan Andrews

Regional Manager, Life Force Insurance Services

Policy name: Peace and Health Life Insurance policy

Purpose: The purpose of this life insurance proposal is to make the customer aware of the rules and regulations associated with this particular policy and what he has to pay to the firm in order to get these services

Details of Life Insurance Proposal:

  • The term of the life insurance policy shall commence from March 1, 2012
  • The insured shall pay a monthly amount of $500 to the insurance company
  • The amount will be returned to the insured’s family upon his death after calculating the interest