How does life insurance work?

  • by Rahim
  • Aug 12,2017
  • 5 answers

How does life insurance work?


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Insurance Answers (5)

Casey Y 7 days ago

Very easy, its like a longshot bet. You pay some money and they pay out a big amount when you die. If you pay in more then you received in payout (don t forget the time value of money...very important here), they win. If you pay in less then they pay out...you win.

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Rinkydink last week

You buy a life insurance policy after a physical exam and start making payments based the $$$ amount on the policy, your age, health, life expectance. Payments are made per a schedule and when you die your benificuary receives the $$. You have to discuss this with an Insurance Agent to get all the conditions.

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Paul last week

It's more or less a bet. You bet a company that you'll die in a certain time period. If you do die, then the insurance company pays out the agreed amount to your benificieries, if you don't die then it keeps your premiums and you get nothing.
Note this is different to Life Assurance. In that you pay premiums and get a payout when you die.
It's insurance because you might or might not die in a given period but assurance because everybody dies in the end.

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martin last week

You can insure yourself or a family member or a business partner. Upon death, the insurance company pays the named beneficiary tax free. The beneficiary has to be family or business partner.

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Hakeem last week

In this day and age, life insurance works the way you want it to. If you get the right policy (preferably an IUL), you can decide how much you pay, when you pay it, and all the ins and outs of the policy. It's not just about paying someone else when you die anymore. Lots of policies nowadays come with living benefits and other riders and clauses that allow you to take most of the face value before you die. It all depends on how you set it up but now, more than ever, there are more ways to set it up exactly how you need it to be. Don't be afraid to set up the policy. Now is the perfect time to plan for the future. The earlier you set it up the easier it'll be for you.

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