| It recently occurred to me that I've been writing | | | | that the insurance was bought for. In the event |
| several articles about life insurance, individual, | | | | that something happened to the person that is |
| group, family, and so on, but I haven't taken the | | | | insured by the policy, a payment would be made |
| time to actually explain the basics of life insurance | | | | to the beneficiary. |
| itself. I'm going to do that in this article. | | | | The beneficiary is the person that receives |
| Life insurance policies pay a death benefit, which is | | | | payment in the event that anything happens to |
| known as the "face value" to the beneficiary of | | | | the insured. There can be more than one |
| the policy. The face value is nothing more than | | | | beneficiary for each insurance policy. Example, let's |
| the amount of the policy. Example, a $100,000 life | | | | say that one of your parents has a life insurance |
| insurance policy would have a face value of | | | | policy and they pass away suddenly. If you have |
| $100,000, a $50,000 life insurance policy would | | | | brothers and sisters there is a good chance that |
| have a face value of $50,000, etc. that's all there | | | | your parents named all of you as beneficiaries of |
| is to it. | | | | the policy. |
| Besides the insurance company, there are only | | | | Example, let's say that you have one brother and |
| three other people normally involved with any one | | | | one sister and the policy was for $60,000 even. |
| life insurance policy. These three people are the | | | | In this case, you would each receive $20,000. If |
| owner, the insured and the beneficiary. Let's take | | | | you're an only child you'd receive it all. |
| a look at each one of these people. | | | | There are only three basic types of life insurance. |
| The owner of the policy is the person who | | | | These are Whole Life, Endowment and Term. |
| purchased the policy and is making the premium | | | | Although there are different variations of |
| payments. The owner of the policy makes all of | | | | insurance policies, these are the three that you |
| the decisions regarding the policy, including who is | | | | really need to focus on if you're considering |
| going to be insured and who the beneficiary is. | | | | getting a life insurance policy for yourself. |
| The insured person is exactly that, the person | | | | |