How Life Insurance Works

  • Key Takeaways

    • The concept of pooling is critical to life insurance because the losses of the few can be paid for by relatively small contributions from the many.
    • Life insurance premiums are adjusted for investment income, marketing/administrative costs, taxes, and actuarial risks.
    • Yearly renewable term life insurance is cost-prohibitive in later years due to adverse selection and the increased probability of death.
    • In whole life policies, the level premium is higher than necessary to pay claims and other expenses during the early years of the contract, but less than the cost of protection equal to the total death benefit during the later years.
    • Level premium policies allow for cash value accumulation.
    • The difference between the reserve and the face amount of the life insurance policy is the net amount at risk for the insurer and the protection element for the insured.
    • Insureds may realize their cash value by surrendering the policy, taking out a loan, or letting the policy mature as part of the policy’s death benefit.
    Read more ...

Profit from my 35+ years experience working with high net worth individuals, families, entrepreneurs and businesses, helping them create wealth, keep their wealth and pass it on to the next generation. You can benefit too. I have made and lost millions in the stock market and you can benefit from this too. Ever since I have been searching for Safe Income Strategies and Solutions. We use three Safe Income Strategies that are focused on keeping your money safe, paying more than Bank CDs, Money Markets and Treasuries without the gut wrenching downside and yo-yo volatility of Stocks, Bonds and Mutual Funds. These Strategies Work. During the Financial Market meltdown of 2008 and 2009 none of our clients using these Strategies lost money due to market volatility.

Share this article

Leave a comment

Your email address will not be published. Required fields are marked *

Share
Plugin Sponsor WordPress Premium Plugin