UG Insurance Brokerage Inc Blog
Can you predict death? Of course, no one does. Having preparation before this unfortunate thing happens secures the stability of loved ones. Life insurance pertains to the guaranteed payment or benefits that the insurer will give to the chosen beneficiaries of the policyholder.
Functions Of Life Insurance
The policy of insurance has three functions. These are premium, death benefit, and cash value.
The premium is the amount that the policyholder pays. The insurer must pay the required money if the owner dies with considerations such as gender, hobbies, occupational status, medical history, and life expectancy. Usually, the company’s processes are part of the payment of the policyholder.
2. Face Value
The beneficiaries after death may be the children of the insured person. The insurer gives the corresponding amount to the children or parent of the deceased, depending on the agreement beforehand.
3. Cash Value
This function has two categories. The usage may serve as the savings account that the policyholder can use in which the cash increases based on the tax deferral. On the other hand, the owner can also use the cash value to pay premiums or obtain additional insurance.
Typical Kinds of Life Insurance
There are various types of life insurance. Usually, it functions to hang on to meet the needs and wants of the owner. The following are standard terms used for most insurance companies with different coverages in it.
Who Should Buy Life Insurance?
Life security provides support to those dependents after the death of an insured. Here are examples of the people who should buy it.
Life insurance is not just for your security after death, but it also offers stability and financial support to your loved ones. Hurry and get protection now.
At UG Insurance Brokerage Inc, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (718) 848-7777 or Click Here to request a free quote.