Life insurance policies fail and leave families in trouble
Life insurance, but let’s face it. Most people might their friends like they just bought a new Corvette, but they still did because they love their family and want their family to continue living in its style. current life. the premature death of the main breadwinner.
While this article does not apply to people who have term insurance, to those who have purchased permanent life insurance, which is life insurance with an additional savings element, this information will be very important.
To understand the problem, I’ll first give you a brief guide to life insurance and then walk you through how something that looks like a real bet can go so wrong. Life insurance can be divided into two main types: term and permanent life insurance.
Term insurance person
With term insurance person pays a certain amount of money, called a premium, over a period of one to 30 years. During the specified period, while the insured person pays the premium, the insurance company is obliged to pay the beneficiary of the insured person a certain sum of money, called a death benefit, in the event that the insured person dies during this period. period.
If a person does not die within this time frame, the insurance company saves money as well as the profits from that money. While there are now various types of term insurance, including the term “return on premium,” which refers to the dollars insured at the end of the term (but not the income of money), the general essence of the term is Term insurance is that a person is covered for a certain period of time.
If they want to cover more than this period, they have to purchase another policy. Urgent insurance is really not the subject of this article, so if you have it, you can stop reading now if you want to and be sure that as long as you pay the premium and the insurance company remains financially solvent, your family will pay in case of your untimely death.
Another type insurance
Another type of insurance is called permanent insurance. Permanent insurance is insurance that pays him a death benefit, similar to the term, but also contains “secondary” savings, which gives the policy a value called monetary value.
Premiums are paid under the policy, some are paid for insurance and the rest is used to collect savings. There are three main types of permanent insurance which vary depending on what is done with the savings component. The first type of permanent insurance is life insurance.
The elements of life insurance savings are invested in the general fund of the insurance company, where it receives interest. The amount of interest allocated to a particular person depends on the amount of money in the general fund that belongs to him.
Insurance politicians company
Insurance politicians, company when involved, also pay dividends. In general, politicians are not in danger for life, as the money received is guaranteed by the insurance company. As long as the insurance company remains solvent, it will pay death benefits.
The only problem that a person who owns an “All Life” policy usually faces – is the overpayment for insurance and death benefits, which do not keep pace with inflation.
The second type of permanent insurance is called universal life insurance. Under universal life insurance, the cumulative pool is a separate account, as opposed to “Whole life” when the cumulative pool is attached to the general fund of the insurance company.
The main benefit of universal life insurance is flexibility. For example, if you do landscaping in the northeast of the country and have mostly winter months, you can take out a “Universal Life” policy, fund it in the spring, summer, and summer. fall if you steal a lot of money and pay nothing in winter. month.
Collection insurance companies
Collection insurance companies As long as there is a certain amount of money in the collection of savings (according to the formulas of the insurance company), nothing needs to be done. Plus, if you need extra insurance because you’ve just given birth, you don’t need to purchase another policy.
While you’re insured, you can increase your death benefit under your current universal life policy and pay an additional premium. The money saved from savings from a universal life insurance policy is usually invested in ten-year bonds.
The universal life insurance policy has a guaranteed interest rate as well as a going rate. The money in the basket usually brings a current rate.