I'd like to begin the year with an article about life insurance. Many people find this issue morbid, but believe me when I tell that this contract is just as important as a Will and should be treated with the same respect. Because this essay is long and detailed, I've divided it into chapters to make it easier to read. I hope this has helped you understand the value of life insurance. (For clarity, "You" refers to both the policy owner and the insured.)
Family First Life
http://www.ffl-ol.com
Chapters:
1st paragraph=
2=If you already have life insurance
3= What is the distinction between an insurance agent and a broker?
4= Different Policy Types
5= What are riders and what are the most common categories of riders?
6= A medical examination
1) General Life Insurance: This is a contract between you and an insurance company in which you agree to pay a particular amount (the premium) in exchange for a payout (known as the Death Benefit, face amount, or policy amount) to the beneficiary (the person you want to get paid in the time of your death). This varies depending on the type of coverage (which will be described shortly), your health, your hobbies, the insurance provider, the amount of premiums you can afford, and the size of the benefit. It may appear daunting, but it isn't if you work with the correct agent or broker.
Many people now believe that life insurance is similar to gambling. You're wagering that you'll die at a certain point in time, while the insurance company is betting that you won't. If the insurer wins, the premiums are retained; if you win, you die, and the death benefit is distributed to the beneficiary. This is a morbid way of looking at things, and you could say the same thing about health insurance, vehicle insurance, and rental insurance if that is the case. The truth is that you require life insurance to alleviate the financial burden of your death. Example 1: A married couple, both professionals who earn a lot of money, have a child and, like any other family, they have monthly costs, and one of the couple dies. The chances of the spouse returning to work the next day are close to none. The chances are that your ability to function in your job will deteriorate, putting you at risk of not being able to pay bills or having to utilise one's savings or investments to cover these costs, which does not include death taxes or burial costs. This has the potential to be financially disastrous. Example 2: In a lower middle-income family, one of the income earners dies. How will the family be able to keep up their existing standard of living?
The opportunity to reduce the danger of financial stress is what life insurance is all about. This could be in the form of cash or taxes through estate planning.
DEFINITIONS ESSENTIALS:
The Insured: The person who is protected by the insurance business (he or she is not need to be the policyholder).
The (insurance) Owner: The person who pays the premiums, manages the beneficiary, and, in essence, owns the contract (does not have to be the insured...hope you understand).
The face amount is often referred to as the death benefit. The amount that will be paid to the recipient.
The Beneficiary: This refers to the individual(s) or organization(s) who will receive the face amount (death benefit)
2) If you have life insurance, when should you use it?
To begin, you should check your beneficiaries once a year and your policy every 2-3 years. This is a free service! You must ensure that the beneficiaries are the people or entities to whom you wish to make a payment! Divorce, death, a disagreement, or anything else along those lines can cause you to change your mind about who should receive the benefit, so make sure you have the correct persons, estate/trust, AND/OR organisation (ideally non-profit) to receive it. Furthermore, you should examine your insurance every 2-3 years because many firms may give a reduced cost OR increase the benefit if you renew your policy, or if a rival sees that you have been paying your premiums and will fight for your business. In any case, this is something you should think about if you want to save money or increase the quantity of your insurance coverage! There should be no reason not to do this because it is a win-win situation for you.