Life Insurance

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  • Life insurance provides a financial safety net in the event of death. It is a policy between an owner and an insurer, whereby benefits are paid to benefactors upon the death of the owner. A yearly premium is paid to maintain a life insurance policy. The rates for premiums vary on an individual basis and are determined by age, gender, health, and engagement in high-risk activities.
  • Background

    There are many types of life insurance policies, including: universal, whole, accidental death, limited pay and more. Life insurance is best suited towards those who are at high-risk for death, those that are financial cornerstones in a family or business, and those who need the peace of mind.http://www.mahalo.com/how-to-determine-if-you-need-life-insurance .

    In the U.S., life insurance is typically a for-profit business, and there are more than 2,300 companies. The total assets of U.S. life insurance companies was about $1.4 trillion in 1990.http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/1992/02/01/000009265_3961002085613/Rendered/PDF/multi_page.pdf . On average, life insurance payments comprise about 2% of disposable income in the U.S. In 2009, six life insurers were bailed out in the U.S. economic crisis: Allstate, Ameriprise, Hartford, Lincoln National, Principal Financial, and Prudential.http://www.cnn.com/2009/POLITICS/05/15/bailout.insurers/index.html

    Disclaimer

    The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.

  • Fast Facts

    1. Maker: (Major Insurers): AAA, Allstate, American Family Insurance, Cigna, Colonial Life, Farmers Insurance Group, Genworth, HSBC, Hartford, ING, John Hancock, Liberty Mutual, Lincoln, Metlife, New York Life Insurance, Principal Financial, Prudential, State Farm, and State Life
    2. Origin: 5000 B.C. in China
    3. Number sold/in use: Approximately 2% of disposable income in the U.S. is spent on life insurance. http://www-wds.worldbank.org/external/de...
    4. Fact 5: There are more than 2,300 life insurers in the U.S.
  • Uses


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