How Does Life Insurance Work?


Video Transcript
How does life insurance work?

A life insurance policy is a contract between you and a life insurance company. The concept of life insurance is simple:

choose the length of time you want to be covered
select a plan that best fits your lifestyle and needs
pay a monthly premium

Plans vary from:

  • temporary, or term policies which can cover you anywhere from 10 to 30 years, to
  • permanent policies that grow in cash value over time.

In the event of the insured’s death, the insurance company provides a lump-sum payment to his/her beneficiaries. This money can help:

  • supplement household income
  • fund college tuition, or
  • cover any sudden emergencies

Choosing the right life policy comes down to factors such as:

  • family size
  • current and future income, and
  • assets (such as mortgage and commercial bonds)

For more information on life insurance visit LifeInsurancetype.com or call us today and receive free enrollment assistance.