The first step is to make a claim and apply. Let’s dig deeper into how this method is profitable for insurance companies.
First of all, where does the insurance money go? The insurance money generally goes to a relative or beneficiary. This is contingent on the conditions of the agreement. However, it is made on an individual basis. It’s essential to be aware of the difference between term as well as permanent life.
Term life insurance will cover the policy holder during an established period of time. The time frame can be as short as fifteen years or longer. Death of the policyholder does not mean that any of their beneficiaries will be able to receive the funds.
Life insurance that is permanent, as the name suggests, is covered for the whole of the insured’s time. If insurance policyholder is not able to pay their premiums, the plan is still liable to cover the cost. Companies make their money from the people who are not paying the premiums.
This is just a amount of information on life insurance. The above video provides further details regarding specific legal requirements and the rates that insurance companies charge.