Nothing is more important than ensuring your loved ones are cared for. This can often mean making healthy choices both financially and physically.
Mark Hauser is the co-managing partner at Hauser Private Equity and an experienced leader in the financial world. A leader in private equity, Mark Hauser, understands that financial planning is essential for American families of all economic and geopolitical backgrounds.
To help make life easier, Mark Hauser explored the importance of life insurance while underscoring how the process works.
What Is Life Insurance?
Life Insurance is considered a contractual agreement that is legally binding between both an insured policyholder and their chosen insurance company. Multiple entities can insure the policyholder.
Throughout the lifetime of a life insurance policy, the policyholder will pay regular premiums to their chosen company. Whether through a lump sum or continual installment agreements, the premiums ensure that the individual is covered. Policies with more considerable death benefits or those targeted toward higher-risk individuals will carry higher premiums.
When an insured individual passes away, one of their named beneficiaries receives the face value or “death benefit” of the policy.
The Living Benefit Clause
Occasionally, Mark Hauser notes, insured individuals will find themselves with a life insurance policy containing a living benefit clause.
A Living Benefit Clause is instituted in cases where an individual may be diagnosed with a terminal illness, chronic issue, or critical illness. If the insured individual qualifies for the policy, their beneficiaries are paid out while the insured individual is still alive.
Primary Types of Life Insurance
Mark Hauser breaks down the different life insurance forms so his followers can better understand them. Both forms of life insurance will provide a death benefit to at least one beneficiary, yet that is where their similarities end.
- Term Life Insurance – This policy lasts for a predetermined period before expiring. Applicants will select the term they apply for upon submission, typically 10, 20, or 30 years. Term life insurance policies allow for annual renewals based on age.
- Permanent Life Insurance – This policy is more expensive than term coverage but is insured for the duration of the individual’s life. There are only two exceptions to a Permanent Life Insurance Policy, including the policyholder surrendering the policy or opting to pay their premiums no longer.
Life insurance is a complicated process that is as important as it is complex. Mark Hauser uses his years of industry experience to help guide clients toward the right solutions by offering a foundation of information for their choices.