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What is the distinction of life insurance premium and proceeds?

Can you give me the core concept of life insurance proceeds? Does it mean when you are entitled to received proceeds, it includes the premium or the amount invested and the interest therein or you are only entitled to receive the amount invested in the company? Please give me a life situation concept so I can understand it well. Many thanks!

Public Comments

1. IN LIFE INSURANCE THE PREMIUM CHARGED BY THE INSURER ARE OF 2 PARTS 1 IS RISK PREMIUM AND 2 ANOTHER IS YOUR INVESTMENT /SAVING PORTION WHEN YOU RECEIVE THE PAYMENT IT IS SUM ASSURED ALONG WITH BONUS IF ANY THERE ON WILL BE PAYABLE AND NOT THE PREMIUM IS REFUNDED
2. The premium is the cost (monthly, semi-annual, annual) and the proceeds are the death benefit that you receive. Older, unhealthier people and policies that last longer pay a higher premium to compensate for the higher risk.
3. Life insurance premiums are what you pay for your life insurance policy. Premiums may be paid in a single lump-sum, monthly, quarterly, semi-annually, or annually. Proceeds are the death benefit paid to your beneficiary if you (the insured person) were to die. Proceeds are usually paid free from federal income tax. You do not receive the proceeds of the life insurance policy, they are paid to your beneficiary upon your death, if the life insurance policy is still "In Force", and the premiums are paid up. The life insurance proceeds paid to your beneficiary upon your death do not include the premiums paid by you for the life insurance policy.
4. The premium is what you pay in order to have the life insurance. The proceeds is the insurance money that the beneficiary receive when the insured dies.
5. Life insurance proceeds is just a fancy way to mean "lump sum to be paid up on the insured's death" When you take up a Life Insurance it is like when you buy a sandwich. You choose what to put in it, you ask for it, they'll give it to you and then you pay for it, then you consume it. Life insurance is the same: you choose what terms you like, (eg: Protection policies, Investment policies ) you then ask for it, they'll come up with a contract and a price, you sign the contract which will specify what "proceeds"(how much money) will go to the beneficiary and what the premium will be (how much you pay). You then pay up a specified amount known as a premium at fixed intervals or in lump sums.