How Do Life Insurance Policies Work?

Video Transcript

"Hello my name is Vic Schumacher and the company is HPE Financial Services. The question today is how do life insurance policies work? A life insurance policy will all, they will all have a death benefit and it is an insurance program where a benefit is paid to a beneficiary in the event someone dies. The life insurance policy premium is based upon the age of the person the amount of the death benefit that is there, maybe it's one hundred thousand dollars, maybe it's one million dollars also the zip code where the person lives and his lifestyle. Once the application is filled out it will go to underwriting and the applicant or the person being insured will give that insurance company to check records to find out exactly what type of person this is, how the credit history of the person is there, if this person has had DUI's in the past. In other words who is this thing that we are trying to insure, what are the risks that we have and why does this person want a million dollar policy. So life insurance companies work very simple just put yourself inside of the insurance company, would you want to insure yourself? My name is Vic Schumacher and the company is HPE Financial Services, helping people every day."