Life Insurance is a product of insurance that pays for death insurance. It should definitely be called "Death Insurance," but people don't like that name. But it does confirm the death of a person. In fact, guaranteed the economic losses that would occur when an insured person dies.
Such economic losses affect many different types, such as:
- distribution of income to the "breadwinner" in the family
- loss of services in the mother-home family
- final expenses on the death of a child
- final personal expenses after illness and treatment
- "Keyman Key", which guarantees the owner or significant business of the business in the event of an economic loss the business will suffer when it dies
- estate planning insurance, where a person is guaranteed to pay estate tax upon death
- "Buy and sell contracts," where purchasing insurance to finance a business transaction in the sudden death of parties in a transaction
- Accidental death insurance, where a person buys a policy that pays in the event of death due to an accident
- Property insurance, where the borrower buys a mortgage policy at the time of death - and much more.
Life insurance has been around for centuries, and in some cases, it has become a much better product. Insurance companies have been able to set up death tables, which are the study of mortality patterns over time ... usually over a life span of 100 years. These death tables are surprisingly accurate, and they allow insurance companies to predict closely how many people of any age will die each year. From these tables and other information, insurance companies incur insurance policy costs.
Cost is traditionally reflected in the annual cost of a thousand thousand acquisitions. For example, if you want to buy $ 10,000, and a thousand dollars was $ 10.00, your annual premium could be $ 100.00.
Modern medicine and better nutrition have extended the life span of most people. Lifespan has contributed to significant reductions in life insurance premiums. In most cases, the cost of insurance is only one thousand cents.
There is only one type of life insurance, that is Term Insurance. That means a person has insurance for a certain period of time, or time. All other life insurance products have time insurance as its main ingredient. There is no other items they can use. However, insurance companies have developed many, many life-sustaining products that often obscure the reasons for life insurance. They also strongly recommend insurance companies.
Time insurance
The most basic life insurance policy is the annual renewal policy. Each year, the premium rises slightly as one ages. Insurance companies develop a high-quality premium policy, which stipulates an increase in the annual premium for policyholders. Insurance basically covers all premiums ranging from 0 to 100 years and then divided by 100. This means that in the first years of the policy, the policyholder pays the extra money needed to cover the cost of pure insurance, and in previous years the premium is less than the cost of pure insurance.
A product of the same standard can be built on terms of any length, such as 5, 10, 20, 25 or 30 term years. How to make a premium rating is very similar in each case.
But this new product has caused some problems. Insurers know that most policyholders do not adhere to a lifelong policy. As a result, current policyholders were paying future premiums and canceling their policies. Insurance companies are happy because they have to save money. But over time they developed the idea of Cash Value.
Cash Value Insurance
With Cash Value Insurance, a portion of the unused premium you use is credited to the account linked to your policy. The money is not yours ... it belongs to the insurance company entirely. If you cancel your policy and request a refund, they will refund you. In addition, you have other options:
1. Use the amount of money to buy additional insurance
2. Use the amount to pay the existing premiums
3. You can borrow money at interest
4. When you die, the insurance company saves the amount and only pays the face value of the insurance policy.
So, does this monetary product make sense? My answer is "NO!"
Cash Value Life Insurance comes with many other names, such as:
- Full Life
- Global Health
- Flexible Life
- Reproductive Health Problems
- Participant Life (no benefits)
- Health Participation (paying benefits)
Many life insurance companies and companies sell their products as an investment product. But value insurance is not an investment. Investment dollars and insurance premiums should not be combined into one product. And investment dollars MUST NOT be invested in an insurance company. They are middle-aged men. They will take your investment and plant it for themselves, and keep the difference.
Think about the methods employers use to sell life insurance, and compare them with other types of insurance. What you will see is that the strategies and marketing strategies of life insurance are not as good as other insurance products.
Have you ever considered buying a car insurance policy, or a homeowners policy, or a business insurance policy where you paid extra money to an insurance company, or made you borrow from them? Surprisingly, though, life insurance agencies have become so successful that they convince intelligent people that high-quality life insurance is a good product to buy.
Careful guessing why insurance attorneys have brutally sold out value-added and short-term insurance?