Voluntary & Non-Voluntary Life Insurance for Companies in Maine, Massachusetts, New Hampshire, and Beyond

What are some of the key definitions when discussing voluntary life insurance? There are four main terms, these include death benefit, premiums, cash value, and beneficiary.

• Death benefits are the pre-determined amount of money that is guaranteed to the policy holder’s beneficiaries in the event of a death.
• Premiums are the amount you pay monthly for insurance. Typically, the lower the monthly premium the higher your yearly deductible is.
• Cash value is only relevant in most cases of a permanent voluntary life insurance policy. This is due to the cash value of the policy acting as a savings account that the policyholder can access during the duration of coverage. An unknown fact regarding permanent life insurance and cash value is that depending on the type of permanent life insurance the policyholder can use the cash value to pay premiums.
• Beneficiaries are the individuals that the policy holder has named to receive the benefits if they pass away. The beneficiary doesn’t just have to be one person, it can be multiple people, an organization, business, and even a charity.