Taking the Mystery Out of Life Insurance
hi guys welcome back so today I’m going to read article entitled taking the mystery out of life insurance an interview with Connecticut insurance commissioner Andrew Mayas if you like many consumers see life insurance as a big mystery you know you probably need it but aren’t exactly sure how it works other than that it pays money to your legs of kin when you die in fact there is much more to life insurance than a death benefit and it’s not all the dead Mysteries provided you know the right people to talk to we find one of those people Andrew May’s Insurance commissioners of the states of Connecticut commissioner Smith has plenty of experienced in mystifying complicated subject he is graduate of
University previous member of deloitte’s gender for financial services the raise equipped to an extensive discussion about life insurance so it works what customers need to know to protect their families and themselves and where to go for information and help incident Define Investopedia let’s start by taking a look of the big picture from the let’s from the years perspective with its insurance to mean to to me insurance as a way for society to be able to get things done and I mean that it very pretty Sims you go back to the Babylonians and the first record of incidence policy which were for ship going out to sea insurance was a means to facilitate trade so one loss doesn’t wipe everybody’s out if you look at it as a way for people to take risk it’s the engine of capitalism within Family Insurance is also way to preserve help you can go out to work ensure you house your car yourself if something happens your family is not real if you get sick you can be treated and continue to full fight for your family if you move if we move it across Generations insurance is a way to transfer wealth that is message that I think we need to get across more get across more if you have an insurance policy that you have built up with current dollars and good for bid to Die the proceed could go to your family so they can maintain their lifestyle it’s a way to paying it forward if you will the role of tourists can you expand a bit of a row of the risk it comes to life insurance obviously Insurance spread of the risk how does that work life insurance spread out risk in a couple of areas it spreads it out of a large number of people over the
Participant to a certain extent it also spread out the risk of a time that’s because you need to change as a kid in college for example I’m sure I was not thinking about life insurance I may have been thinking about be our but certainly not about life insurance [Music] once I had my own child and broke my own house I realized the need for life insurance now that my daughter is crowned those needs have changed again the purpose of their life insurance has changed consequently I have real life insurance over the years and part of that goes into the pool to help the person behind me whether it’s the Next Generation or my neighbor so when you talk about risk with life insurance you are spreading the risk out across people and I will submit across generation across time understanding permanent Hall and term insurance thing after insurance for as a specific function of time term life insurance is for specific number of years such as 10 or 20 years it could be the length of your mortgage for instance or until your kids out are out of college you have got the coverage for that time and you are going to be paying for the time there is no accumulations of value it simply straight incidents most room insurance is renewable at the end of the term thermal life insurance can be great alternative because it is less expensive for the most part temperament in life which accumulate gas value with permanent or whole life you will be paying into that I’m going to generalize a little bit here your entire life there are such things as a single premium plan or a plan eventually pays for itself but it’s cash value it builds up the gas value during your lifetime so that’s all the interview with we mace that’s all the article today my play and see you on my next article