2020 has been one of the most unforgettable years of our lifetime, be it not the best year of our lifetime. It’s safe to say that your business or organization had to pivot this March when the pandemic hit. Have you taken any time to look at your life insurance policies? What type of pivot could you make in your life insurance policy? If you are a business owner, bank owner, or seeking C-Level talent for your organization, there are many options available today you may not be aware of.
Oh one more thing you may not be aware of… It’s National Life Insurance Awareness Month
Either way, here are a few things about how this whole thing works.
How Life Insurance Works
Simply stated, your life insurance policy is your contract between you and your insurance company that says that in return for your small regular payments, the insurer will pay your family a death benefit if and when you pass away. Here are a few terms to get us started.
- Policy- The actual contract between you and insurance company
- Policy holder- The person who owns the insurance policy — You. Also possible to purchase a policy for someone else
- Premiums- Your monthly, semiannual, or annual payments made to your insurance company.
- Beneficiary- The person You Choose to receive all or part of your death benefit
- Death Benefit – The Money given to the beneficiary by the life insurance company.
Your premiums you pay for a life insurance policy depend on your age, the amount of coverage you may want (size of the death benefit) and your heath, dependent on many factors. For example, a smoker can expect to pay more than 2 or 3x as much as a nonsmoker.
Your Life Insurance Options
Term Life Insurance covers you for some designated amount of time, say 10, 20, or 30 years. If you die during that term, the insurer will pay our the death benefit to your chosen beneficiary. You decide the length and your desired amount of coverage. Permanent Life Insurance covers you throughout your entire life, and offers cash value. Permanent policies come in several varieties included but not limited to; Whole Life, Universal Life, Variable Life.
We will continue to talk about things like the differences between Whole Life, Universal Life, and Variable life insurance here on our blog. You can also tune into our podcast called The MBK BEAT on Apple, Spotify, and watch on YouTube! If you or someone you know has any questions regarding life insurance, please don’t hesitate to give us a call or reach out via our contact form! Stay strong Buffalo! Go Bills!