Marketing Plans That Suit Life Insurance Policies

Life Insurance is an insurance product that pays for the death of the insured. From these tables and other information, the insurance companies derive the cost of the insurance policy. All of the other life insurance products have term insurance as their main ingredient. The insurance companies have invented many, many other life products that tend to obscure the reasons for life insurance. That means that in the early years of the policy, the policyholder pays in more money that it takes to fund the pure insurance cost, and then in later years the premium is less than the pure insurance cost. Life Insurance is an insurance product that pays for the death of the insured. It really should be called “Death Insurance,” but people don’t like that name.

Those economic losses take a lot of different forms, such as:

– final expenses of an individual after an illness and medical treatment

– the loss of services to the family of a stay-at-home-mom

– estate planning insurance, where a person is insured to pay estate taxes at death

– “Sell and buy Agreements,” in which life insurance is purchased to fund a business transaction at the untimely death of parties in the transaction

– Mortgage life insurance, in which the borrower buys a policy that pays off the mortgage at death – and many more.

Marketing Services for Insurance Providers

The insurance companies have been able to develop advertisement tables, which are studies of statistical patterns of human death overtime usually over a lifetime of 100 years. From these tables and other information, the insurance companies derive the cost of the advertisement policy. The cost is customarily expressed in an annual cost per thousand of coverage. If you wanted to buy $10,000 of the marketing strategy, and the cost per thousand was $10.00, your annual premium would be $100.00. Modern advertising and better marketing agencies have increased the life expectancy of most people. Increased life expectancy has facilitated a sharp decrease in life insurance premiums. In many cases, the cost of insurance is only pennies per thousand. All of the other marketing plans have term insurance as their main ingredient. The insurance companies have invented many, many other life products that tend to obscure the reasons for life insurance. They also vastly enrich the advertising companies.

Term Insurance.

The most basic life insurance is an annual renewable term policy. That means that in the early years of the policy, the policyholder pays in more money that it takes to fund the pure insurance cost, and then in later years the premium is less than the pure insurance cost. The same level term product can be designed for terms of any length, like 5, 10, 20, 25 or 30-year terms. The method of premium averaging is much the same in each case. Insurers know that the vast majority of policyholders do not keep the policy for life. The insurance companies were delighted because they got to keep the money.