Life insurance is an insurance
product that pays the death of the insured. It should really be called
"death insurance", but people do not like that name. But it ensures
the death of an individual. In fact, what is insured is the economic loss that
would occur with the death of the insured.
These economic losses have many different ways, for example:
These economic losses have many different ways, for example:
- The income stream from it all
"breadwinner" in the family
- The loss of services to the
family of a parent who stays at home
- The last death of a child
spending
- The final expenditure of an
individual after an illness and medical treatment
- Cover "Keyman", which
ensures the owner or a company valuable employee against the company to suffer
economic loss in his death
- Estate planning Safe, where a
person is insured to pay estate taxes at death
- "Agreements of Purchase
and Sale" in which life insurance is purchased to fund a business
transaction with the premature death of the parties to the transaction
- Accidental Death, when a person
buys a policy that pays if they died because of an accident
- The mortgage life insurance,
where the borrower acquires a policy that pays the mortgage at the time of
death - and many more.
Life insurance has been around for hundreds of years, and in some cases become a much better product. Insurance companies have been able to develop life tables, which are statistical studies standards of human death over time ... usually on a life of 100 years. These mortality tables are surprisingly accurate, and allow insurance companies to provide the number of people of any age die each year. From these tables and other information, insurance companies take the cost of the insurance policy.
The increased life expectancy has allowed a sharp decline in life insurance premiums. In many cases, the cost of insurance is only a few cents per mile.
There is really only one type of life insurance is term insurance. All other life insurance products have a term insurance as the main ingredient.
Life insurance has been around for hundreds of years, and in some cases become a much better product. Insurance companies have been able to develop life tables, which are statistical studies standards of human death over time ... usually on a life of 100 years. These mortality tables are surprisingly accurate, and allow insurance companies to provide the number of people of any age die each year. From these tables and other information, insurance companies take the cost of the insurance policy.
The increased life expectancy has allowed a sharp decline in life insurance premiums. In many cases, the cost of insurance is only a few cents per mile.
There is really only one type of life insurance is term insurance. All other life insurance products have a term insurance as the main ingredient.
Term insurance
Most basic life insurance is an annual renewable policy. Insurance companies have developed a level premium policy, which approved the annual increases in premiums for the insured. The insurers essentially added all age price Age 0 to 100, and then divided by 100. This means that, in the early years of the policy, the insured pays more money than you need to cover the cost of pure insurance then years later, the price is below the cost of pure insurance.
Insurers know that the vast majority of insured does not maintain a policy for life. Therefore, the insured long-term level of future pay and then cancel their policy premiums. The insurance companies were delighted because they have to keep the money. But over time, they developed the concept of value for money.
Insurance cash value
With the amount of insurance money, part of the unused premium you spend is credited to an escrow account policy. The money is not yours ... it is entirely up to the insurance company.
Most basic life insurance is an annual renewable policy. Insurance companies have developed a level premium policy, which approved the annual increases in premiums for the insured. The insurers essentially added all age price Age 0 to 100, and then divided by 100. This means that, in the early years of the policy, the insured pays more money than you need to cover the cost of pure insurance then years later, the price is below the cost of pure insurance.
Insurers know that the vast majority of insured does not maintain a policy for life. Therefore, the insured long-term level of future pay and then cancel their policy premiums. The insurance companies were delighted because they have to keep the money. But over time, they developed the concept of value for money.
Insurance cash value
With the amount of insurance money, part of the unused premium you spend is credited to an escrow account policy. The money is not yours ... it is entirely up to the insurance company.
Use the value of the money to pay
existing prices
You can borrow money at interest
If you die, the insurance company
keeps the cash value and pay only the face value of the insurance policy.
Thus, this product value for money sense? Life insurance cash value comes in many other names such as:
- All the life
- Universal Life
- Variable Lifetime
- Interest Sensitive Life
- Do not participate-Life (without dividends)
- Participate Life (dividends)
Many life insurance agents and companies tout their products as an investment product. But the amount of the insurance money is not an investment. dollar investment and insurance premiums should never be combined into one product. And investment dollars should never be invested with an insurance company. Think of ways that agents use to sell life insurance, and compare them to any other type of insurance. What you will see is that the tactics of insurance sales and technical life are ridiculous compared to other insurance products.
Would you ever consider buying a car insurance insurance policy or the policy owners, or business insurance policy you paid an additional premium that the insurance company or maintained the did you borrow? But interestingly, the life insurance agents have been very successful to convince intelligent people that the life insurance cash value is a good product to buy.
Care to guess why insurance agencies sold aggressively cash value of the insurance and prevented term insurance?
Commissions.
Insurance companies have become very rich in cash value insurance. So to encourage sales, they pay huge commissions. Long term insurance costs can vary from 10% to 50%, sometimes up to 100%. But cash commission of insurance value up to 100% of the premium for the first year, and the substantial renewal commissions for years after.
Term insurance is much cheaper than insurance value in cash.
An example of 30 year-old male, non-smoker, buying a value of $ 100,000 of coverage:
Term insurance is $ 0.50 per mile for a premium of $ 50.00. 100% commission, the commission would be $ 50.00.
Cash value insurance costs $ 12.50 per thousand for a $ 1,250.00 price. 100% commission, the commission would be R $ 1,250.00.
My opinion is that life insurance agents work from one of three positions:
1. Ignorance - they do not know how the insurance value in cash.
Thus, this product value for money sense? Life insurance cash value comes in many other names such as:
- All the life
- Universal Life
- Variable Lifetime
- Interest Sensitive Life
- Do not participate-Life (without dividends)
- Participate Life (dividends)
Many life insurance agents and companies tout their products as an investment product. But the amount of the insurance money is not an investment. dollar investment and insurance premiums should never be combined into one product. And investment dollars should never be invested with an insurance company. Think of ways that agents use to sell life insurance, and compare them to any other type of insurance. What you will see is that the tactics of insurance sales and technical life are ridiculous compared to other insurance products.
Would you ever consider buying a car insurance insurance policy or the policy owners, or business insurance policy you paid an additional premium that the insurance company or maintained the did you borrow? But interestingly, the life insurance agents have been very successful to convince intelligent people that the life insurance cash value is a good product to buy.
Care to guess why insurance agencies sold aggressively cash value of the insurance and prevented term insurance?
Commissions.
Insurance companies have become very rich in cash value insurance. So to encourage sales, they pay huge commissions. Long term insurance costs can vary from 10% to 50%, sometimes up to 100%. But cash commission of insurance value up to 100% of the premium for the first year, and the substantial renewal commissions for years after.
Term insurance is much cheaper than insurance value in cash.
An example of 30 year-old male, non-smoker, buying a value of $ 100,000 of coverage:
Term insurance is $ 0.50 per mile for a premium of $ 50.00. 100% commission, the commission would be $ 50.00.
Cash value insurance costs $ 12.50 per thousand for a $ 1,250.00 price. 100% commission, the commission would be R $ 1,250.00.
My opinion is that life insurance agents work from one of three positions:
1. Ignorance - they do not know how the insurance value in cash.
2. Greed - they know exactly how
the insurance value of the works on cash and sell it anyway.
3.
Knowledge and duty - than term insurance sales.
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