How Does Life Insurance Work?

Video Transcript

"Hello, my name is Vic Schumacher, the company is HPE Financial Services. The question today is how to life insurance policies work? Well, first of all, you have to fill out an application. That application will ask you your age, and the zip where you are, and if you're a male or female. They'll ask you how you're going to pay for this policy, and they will ask you what is the purpose of the policy. Is this to build wealth? Is this policy to take care of a death benefit, if that be the case. Then you will give the insurance company permission to check your records, your credit history, possible DUI's, your health history, things of that. Once they understand who you are, and a little bit of a background of personal information, they will come back to you with a firm premium price. In other words, how much is this policy going to cost you? Naturally, the cost of the policy is depending on age. And the amount of the policy, if it's a hundred thousand dollars death benefit, if it's a twenty five thousand death benefit, if it's a million dollar death benefit. But the policy, the price, the premium, are all determined by yourself and your history. My name is Vic Schumacher, company is HPE Financial Services, helping people every day."