Michigan Life Insurance Basics with complete solutions | Latest 2024/2025

Life Insurance ️ protects against financial loss associated with an insured's death, and pays a death benefit to beneficiaries upon the death of the insured. The policyowner of the insurance contract pays a premium to the insurer. The insurer issues a policy covering the insured. In the event of the insured's death, the insurer pays the death benefit to the beneficiary. -May be purchased by individuals or businesses. Survivor Protection ️ The death of the primary wage-earner will usually stop the flow of income to a family. The death of a nonearning spouse who cares for minor children can also cause great financial hardship for the survivors. Life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death. -Planning for survivor protection requires careful examination of current assets and liabilities as well as determining what survivors' needs may be. -Estate Creation ️ A person may create an estate through earnings, savings, and investments, but all of these methods require disciplined action and a significant period of time. -is especially important for young families that are getting started and have not yet had time to accumulate assets. When an insured purchases a life insurance policy, he/she will have an estate of at least that amount the moment the first premium is paid. There is no other legal method by which an immediate estate can be created at such a small cost. -Cash Accumulation ️ Life insurance may be used to accumulate specific amounts of monies for specific needs with guarantees that the money will be available when needed. Michigan Life Insurance Basics with complete solutions | Latest 2024/2025