1) About General Health Insurance:
This is an agreement between you and the insurance company to pay a certain amount (premium) to the company to change the benefit (called Death Benefit, face value, or policy value) to the beneficiary (the person you want to receive paid at the time of your death). This can be based on the type of policy (which will be discussed temporarily), your health, interests, insurance company, how much you can pay in premiums, and the amount of the benefit. Sounds difficult but not the case if you have the right agent or vendor.
Now many people would say that Life Insurance is like gambling. You bet you will die at some point and the insurance company bet you will not. If the insurance wins, they keep the premiums, if you win … okay you die and the death benefit goes to the beneficiary. This is a very serious way to look at it and if so you can say the same about health insurance, car insurance, and rental insurance. The fact is, you need life insurance to reduce the burden of your death. Example 1: A married couple, both highly paid professionals have a child and like any other family, they have monthly expenses and one of them is dead. The chances of your spouse returning to work the next day are very slim. Circumstances in fact that your ability to work in your work will decrease which puts you at risk of not being able to pay the expenses or use the money you have saved or invested to pay for these expenses NOT to include death tax and funeral expenses. This can be very costly. Example 2: low middle family, death occurs in one of the leaders. How will the family be able to maintain their current financial life?
Life insurance is about the ability to reduce the risk of financial burden. This can be in the form of simple cash or tax on estate planning.
Insurance Insurance: A person covered by an insurance company (NOT at the policyholder)
Owner (policy): The one who pays the premium, manages the beneficiary, and is basically the contractor (SHOULD NOT be insured … hopefully you understand that it can be / or).
Face Value: Also known as death benefit. Amount to be paid to the beneficiary.
Beneficiary: Will the person / persons / organization receive a face value (death benefit)
2)When You Have Life Insurance:
First, you should review your beneficiaries once a year with your policy almost once every 2-3 years. This is free! You need to make sure they are not benefiting from the people / people you want to get paid for! Divorce, death, disagreement, anything like that can make you change your mind about someone to get this benefit so make sure you have the right people, estate / trust, AND / OR organization (nonprofit) get the benefit. In addition, you need to update every 2-3 years because most companies can offer a lower premium or increase the benefit if you renew your policy or if you find a competitor who sees you paying premiums that may compete with your business. In any case, this should consider saving money or raising the value of the policy! This is your win so there should be no reason not to do this.
3) Life Insurance Agent or Broker, what is the difference ?:
The main difference is that Agent is usually an independent sales man who often works with various insurance companies to provide the client with the best policy while the Broker is working for a particular company. My advice: always choose an Agent. Not because I’m alone BUT because the agent can look at your profit by providing a variety of quotes, types, available passengers (described later), AND the pros / cons in relation to each insurance company. If you do not like a certain insurance company, tell the agent and he should move on to the next manager (if he persists for some reason, fire him). Consumers NOTE: The agent must be paid by the selected carrier, not by you directly. If an agent asks for money in advance for anything, RUN! There are also Insurance Agents you pay but to keep things simple, see Agent. Supervisors and Agents are also good at reviewing current policies to reduce premiums or increase profits.
4) Types of policies:
There are two main categories: Term Term and Permanent Insurance. In every 2nd category there are sub-categories. I will describe you at a glance so that you can make the best choices for yourself and your loved ones. Remember, you can have an asset / trust or organization as a beneficiary. (Note: There are sub-categories above these sub-categories but the differences are small and self-explanatory which I did not include in this article.
Provisional policy where the beneficiary is only paid when the insured (you) dies for a certain period of time (hence the term “Term”). Term Insurance is usually less expensive with a small death benefit. Some do not require medical tests BUT expect to pay a higher fee as the risk of the insurance company is unknown. Also, temporary insurance usually does not cover the amount of money (defined in permanent insurance) but can be purchased in addition to your permanent policy (for those who may already have one):
The power to change policy permanently. There are some REALLY GOOD policies that do not require medical examination, driver’s history, or risk acceptance in a particular area for a permanent change that is guaranteed by all the benefits that permanent insurance policies have to offer.
Premiums that do not change over time rather than increase (good for those who are older and expect within ten years to have an increase in income).
Growing / Decreasing Time:
Inflation increases or decreases throughout the period while the premium remains the same.
Usually used by employers or organizations. This includes several people to reduce premiums. (Suitable for small business owners)
As the name implies, this provides coverage for the entire life of the insurer. This also creates an amount of money which is good for tax purposes because if you borrow money from you using this amount there is no tax impact. Few policies are more likely to be tax-free in general. But in most cases, if you deduct the amount you only pay tax on the premiums (higher amount) which is a good thing. Just make sure your agent knows that the amount of money can grow to be greater than the death benefit otherwise you will be taxed 10%! Volunteer expenses may also apply when you withdraw money so PLEASE check with an agent who can assist you with this information. You should consider Permanent Insurance if you have a family and don’t worry about increasing the premium (the amount you pay) by a few dollars compared to the time.
All Indigenous Lives:
Pay a premium amount to cover the entire life insurance policy including the accumulation of cash.
Sharing Lifetime Insurance: Like Indigenous Life without having to pay for benefits that could be used as cash OR to pay your own benefits! There is no guarantee that you will be paid benefits, this is based on performance within the insurance company.
Lifetime Insurance Limit: Limited lifetime payments but require a higher amount because you are actually paying for a shorter period of time. This can be based on payment rates (10, 20, 30, etc. payments) or a certain age (lifetime is paid when you are 65, 75, 85, etc.).
Universal Life Insurance: Flexible premiums with variable face value (death benefit) with separate prices. Eg: When you pay the X value, you are covered by the X value.
Indexed Life: Flexible premium / value-added profit is tied to the performance of a specific financial index. The rate of most insurance companies (% growth) will not fall below zero.
Flexible Life Insurance: The Death Benefit and the amount of money vary depending on the performance of the investment from a separate account for investment options. Usually insurance policies ensure that profits will not fall below the specified minimum.
Variable Universal Life Insurance (also called Flexible Premium Variable Life Insurance and Universal Life II / 2): A combination of Variable and Universal with premium / death benefit variables and financial flexibility.
Last Survivor Universal Life Insurance (also called Survivorship or “Second to die” Insurance): It covers 2 people and the death benefit is paid only when both insurers have died. This is FANTASTIC and there is a need for families to pay property tax (usually people who call High-Net).
5) Passengers of Health Insurance, what is and why it is so important:
Passenger is the name of the benefit added to your policy. This provides a special addition to the policy that can be integrated and integrated. There are MANY types of passengers I would have to write a separate article about passengers (and insurance companies add new types of passengers often) but I want to at least name the most popular (and in my opinion, most important) name that you should consider most when choosing a policy. Passengers add to the cost of the premium but do not take passengers lightly; it can be a life preserver!
Passenger Benefit of Accidental Death (AD&D):
Additional death benefit will be paid to the beneficiary if you die as a result of an accident (i.e.: Car Accidents, falling down stairs). This is especially important if the insurer is frequent, young, and family-friendly. Please note: You may purchase AD&D Insurance separately.
Rider of Death and Accidental Removal:
The same is true BUT if you lose 2 legs or vision it will pay the death penalty. Some policies may offer small amounts if you lose one eye or 1 organ. This is good for those who work with their hands.
Disability Salary Rider:
You will receive a monthly income if you are completely and permanently disabled. You are guaranteed a certain level of income. Pay attention to these details, depending on the policy they will pay you depending on how long the disability lasts OR the length of the passenger’s time.
Ability to purchase additional installments from time to time depending on age or policy regardless of insurance coverage.
Standard Time Rider:
Provides a limited amount of time insurance added to your permanent policy. This passenger can add three times as much as the death benefit or your policy. Not a bad thing!
Premium Rider Exemptions:
If you have a disability that results in inability to work / earn an income, the waiver will free you from paying premiums while your policy is still in effect! There is a huge gap between policies and insurance companies so the devil is in details about this passenger.
Family Insurance Passenger:
In the event of death of the insurer, this passenger will provide income for a certain period of time for your family.
Immediate Death Benefit Rider:
Insurer who is diagnosed with a terminal illness will receive 25-40% of the basic policy death benefit (Decision is made between the insurer and the insurance company). This will reduce the death benefit but depending on your finances or lifestyle, this passenger should not be underestimated and should be seriously considered.