Regardless of the type of life insurance policy you choose, there are a few basic features that are common to most policies. These include:
- Premiums: The cost of your life insurance policy, which can be paid monthly, annually, or in a lump sum.
- Death benefit: The amount of money that will be paid out to your beneficiaries when you pass away.
- Beneficiaries: The people or organizations you designate to receive the death benefit.
- Underwriting: The process of determining your eligibility for a life insurance policy, which typically involves a health assessment and may include a medical exam.
- Riders: Optional add-ons to your policy that can provide additional coverage or benefits, such as a waiver of premium rider or an accelerated death benefit rider.
I hope this brief introduction helps you understand the basics of life insurance. As always, it’s important to speak with an insurance professional to determine which policy is right for you and your loved ones.