As the head of a family in Marshall, MI, you might be convinced that it is high time that you bought a life insurance policy to cater for the living expenses of your family when you’re gone. This is a critical decision as it will play an essential role in ensuring that your family has the necessary financial stability even in your absence. However, before buying this policy, Great Michigan Insurance highlights some important terms that you should learn.
Actual Age
You will come across the term ‘actual age,’ which means the age with respect to your date of birth. This is your exact age, and it is vital in determining premiums in life insurance. It is different from ‘physical age, which refers to the age you are closest to because it is also highly analyzed when you are buying a life insurance policy.
Adverse Selection
Naturally, people with very many risks in their lives will always look for life insurance policies compared to those who do not have very many risks. Adverse selection is a term used by most insurance companies to refer to the selection criteria used to avoid risky customers. There are very many guidelines that are included to prevent the welfare of a company when insuring high-risk individuals.
Beneficiary
There is always a major issue regarding who will be benefiting from the life insurance benefits after death. In this case, a beneficiary is a person, several people, or even an organization. It is important to highlight that the beneficiary of life insurance will be the person stipulated by the life insurance holder in the policy document.
According to Great Michigan Insurance, understanding life insurance terms is always a challenge. That is why the company welcomes all individuals in Marshall, MI who are interested in life insurance to learn the basic terms.
