Life insurance is really a promise that if something were to happen to you, your loved ones would not be life having to worry about coming up with huge bills or paying off debt. It is a way of leaving money to people you love in the event of your death. Basically, it is an agreement between you and a life insurance company. You pay them, and they provide you with an insurance coverage. Consider it something like a subscription.
It’s a huge responsibility and one we take it seriously.
- Insured – This refers to the person(s) (or sometimes an organization or entity)
that an insurance policy provides coverage for. For example, if you have an auto insurance policy, you are considered to be the insured in that contract.
- Beneficiary – A beneficiary is a person who is designated as the recipient of payment of a life insurance benefit.
- Premium – This is the amount of money you, the insured, pay to an insurance
company in exchange for coverage. Depending on the policy, your premium can be paid in different ways, such as monthly payments or a single upfront payment. Don’t forget that the higher the premium, the higher your coverage.
- Death Benefit – A death benefit is a sum of money paid out to the beneficiary or beneficiaries of a life insurance policy. A death benefit is the primary purpose of buying life insurance coverage.
Having trouble figuring this insurance thing?
No need to waste time checking Google and later end up confused. Go ahead and grab a drink. We’ll walk you through the entire process as you enjoy yourself.