You’ve probably seen life insurance ads on television commercials, and you’ll wonder what they are about?
Life insurances are contracts in which the insurance company agrees to pay a sum of money to the designated beneficiary in the event of the death of the insured. Benefits for the policy owner and their family include providing financial security in difficult times, covering expenses such as debt, mortgages or education, and in some cases, accumulating cash value that can be withdrawn or borrowed during life.
Some companies in USA that sell life insurance are: New York Life, Northwestern Mutual, Metlife, Prudential Financial, and Mass Mutual.
The amount the beneficiary pays monthly, also known as the premium, is estimated primarily based on several factors, such as age, health, gender, lifestyle, and the amount of coverage desired.
Insurance companies use algorithms and rate tables based on current statistics and projections to determine premiums. The younger and healthier the insured is, the lower premiums they are likely to have, while factors such as smoking, having pre-existing medical conditions such as Diabetes Mellitus, Bronchial Asthma or Cancer, or requesting higher coverage can increase monthly premiums.
As a client, you have the right to ask questions of any financial advisor, or rather policy seller, who offers you the purchase of life insurance for a fixed monthly premium for life.
When economic and financial insecurity invades you due to the high costs of living and inflation, it is normal that you start looking for solutions and life insurance can be one of them, however I invite you to investigate the subject if you are interested, because I am not an expert in the field.
If you are interested in purchasing a life insurance policy, you may ask , for example, “How long does the coverage last?”, “What is the amount of coverage appropriate to your needs?”, What are the terms and conditions of the policy? What can happen if you want to cancel the policy? Does it cover serious illnesses or disabilities? Are there any exclusions or limitations I should be aware of? ? How will premiums be adjusted in the future? How is the claim process handled in the event of death?
As a conclusion to this post, I show you a financial product that can help you alleviate your financial problems, and like any decision it depends on the risk you are willing to take by purchasing a policy like this. I hope you had enjoy this post.
In my next post I will be talking about long term care. A term you may or may not know. If you live with an older adult, I urge you to investigate the issue.
Freelancer professor 