Life Insurance

Life Insurance Policies

Hauser & Lee Insurance Services

 

 

Boiled down to its essence, life insurance is a legal contract between a company and the insured that guarantees payout to a designated beneficiary when the insured dies. The insured in turn promises to pay an agreed premium in order that this money benefit can be paid to the beneficiary in the event of the insured individual’s death. Such a policy is designed to provide for the monetary requirements of the person receiving the benefit. It is a thoughtful way of assuring the well-being of a loved one.

This kind of insurance can be a smart way tool for people of all socio-economic segments to help to ensure that their beneficiaries will be well cared for after the death of the insured who is often the bread-winner. It can also be part of a complete investment plan. Depending on the kind of policy, this form of insurance can be utilized to protect and grow one’s capital by simply keeping up with regular, ongoing premiums. Over time your policy gains interest and value until the benefit payout.

When one decides to buy life insurance for themselves or another individual, they agree to a certain type of policy. The insurance professionals calculate policy prices by examining information collected from the application. Aspects such as one’s health history and other lifestyle choices of the insured individual help to determine premium pricing. The insurance company references mortality tables to determine a life expectancy and to figure out the final cost of the policy. The policyholder will pay these agreed-to premiums thus fulfilling their part of the contract. Upon the death of the insured, the company requires an official, notarized death certificate or some other proof of death before any claims are paid out. The benefit can take the form of either one lump sum paid or in via installment payments, depending on the contract agreed to.

A few of the most common kinds of these policies are term insurance, whole life, universal life, and variable life. Depending on the kind obtained, the policy can have a fixed benefit or can gain value over time and even offer the option of loans against the value of the policy. The policy type chosen depends on the wants and goals of the insured.

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