Here are some Life Insurance Terms & Facts:

At Corporate Financial we offer innovative benefit solutions including life insurance to our clients. Because of this, we would like to provide you with some information regarding life insurance benefit plans.

Policy Owner

The policy owner is the person who owns the life insurance policy. In many cases, the policy owner is also the person who is insured by the policy. However, the policy owner may also be a relative of the insured, a trustee, a business partner, or a corporation.

Beneficiary

A beneficiary is the person(s) selected by the policy owner to receive the life insurance payments upon the instance of the death of the insured person.

Premium

Premiums are the payments made to the insurance company to purchase and keep a policy active.

Death Benefit

A death benefit is the amount paid to the beneficiary at the time of the death of the insured.

Face Amount

The face amount of the policy is the amount of the death benefit as stated in the policy. This does not include additional amounts that the policy may provide.

Insured/Insured Life

Insurability refers to how likely an applicant is to be offered coverage based on current health, medical background, family history and other factors.

What are the benefits of term life insurance?

To keep your insurance premiums as low as possible, here are some tips: Buy now. Premiums for the same coverage generally increase the older you become, and the longer you wait, the more you risk developing a health condition that could increase your premium further, or make you uninsurable.

How can life insurance be more affordable?

To keep your premiums as low as possible, here are some tips: Buy now. Premiums for the same coverage generally increase the older you become. And the longer you wait, the more you risk developing a health condition that could increase your premium further, or make you uninsurable.

  • Consider Term Life Insurance – If you want permanent (whole) life insurance, but you’re on a budget, consider some term for now. You can save money initially by buying some term life in combination with permanent life. Then later, if your budget increases, consider converting the term policy to permanent life.
  • Consider Group Life Insurance – This is offered through your employer, and might be available at a relatively low cost. But keep in mind that your group coverage may end, or become more expensive when you leave your job or as you get older.

How much life insurance do I need?

Consider what your spouse and dependents would need in order to cover day-to-day bills and larger expenses, to live comfortably and to have financial stability. Don’t forget to include savings for college and retirement. Also consider the effect of inflation over time: For example, the amount needed for college, 20 years from now is likely to be significantly higher than today.

What is life insurance?

Life insurance is a contract between an insurance policy holder (you) and an insurer (such as MetLife) where the insurer will pay a designated beneficiary a sum of money upon the death of the insured person. There are different types of life insurance depending on your specific needs, including term life insurance, permanent life insurance, accidental death insurance, and more.

A death in the family is not only emotionally tragic; it can also take a tremendous toll on the future financial security of a family. Suddenly, paying the mortgage or providing for a child’s college education may become much more difficult. Those who make the decision to buy life insurance do so to help ensure their loved ones are taken care of financially.

What kinds of life insurance are there, and how do they differ?

The two main types of life insurance are term life insurance, which offers coverage that may be purchased for a specific time period, and permanent life insurance, which offers protection for an entire lifetime. MetLife offers a number of affordable term life insurance products and several types of permanent life insurance, including whole life insurance, universal life insurance, variable universal life insurance, and survivorship life insurance.

How many years should I choose for my policy?

It depends. The main factor is the period of time during which you’ll need coverage. For example, if you have young children, you may want to consider 20 or 30 years of term life coverage to help your children for college or other future financial endeavors. On the other hand, if your children are out of college and supporting themselves, a shorter coverage period might suit your needs better.

Why do I need life insurance?

A death in the family is not only emotionally tragic; it can also take a tremendous toll on the future financial security of a family. Suddenly, paying the mortgage or providing for a child’s college education may become much more difficult. Those who make the decision to buy life insurance do so to help ensure their loved ones are taken care of financially.

What are the benefits of permanent life insurance?

Permanent life insurance is protection for your entire life, as long as sufficient premiums are paid. Properly structured and maintained permanent life insurance builds equity in the form of cash value which you can use as you see fit.

There are many different options and flexible policies to choose from to suit your needs (whole, variable, and universal life, to name a few.)Corporate Financial is here to ensure that you as a healthcare consumer understand the benefits and intricacies of life insurance. Serving the Greater Miami Area, including Miami-Dade County, Broward County, and Palm Beach County areas, Corporate Financial is here to ensure the long term financial security of you and your family. Contact us today if you have further questions.