Life Insurance

A New Lease On Life

Life insurance is a contract with an insurance company where you make payments over a period of time. In return, the insurance company provides money to your family after you die.

Life insurance is a way to ensure the financial security of your family after your death. Like all other types of insurance, it is a financial tool used to minimize a specific risk—the risk that your family will be left in poverty if you die and are unable to provide for them.

Four components:

  • Insured—the person who takes out the insurance policy
  • Death Benefit—the amount of money the insurance company will pay in the event of the insured’s untimely death
  • Designated Beneficiary—the person who will benefit from the life insurance payout, normally the insured’s spouse or children
  • Premium—the amount of money that the insured pays monthly to secure a life insurance policy

Options

Many different forms of life insurance are available. In general, these can be divided into four categories:

Fun Facts:

  • 41% of the U.S. population doesn’t have life insurance.
  • 93% of Americans say that life insurance is something most people need.
  • Life insurers pay out $1.5 billion every day.

Works Cited

https://www.metlife.com/individual/life-advice/personal-insurance/life-insurance-policies/index.html

http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2014/02/18/3-things-you-should-know-about-life-insurance

http://visual.ly/life-insurance-facts-figures

http://www.investopedia.com/terms/u/universallife.asp

http://www.investopedia.com/terms/l/lifeinsurance.asp

https://www.thebalance.com/compare-term-universal-variable-whole-life-insurance-1289668

http://www.investopedia.com/university/insurance/insurance8.asp

http://www.investopedia.com/ask/answers/08/variable-life-insurance.asp

http://www.investopedia.com/terms/u/universallife.asp