Level 5 Financial Blog
Our most recent posting compared individual insurance policies with group Insurance policies. Businesses often purchase group policies as an employee benefit for their workers, but a business can also utilize life insurance to accomplish succession goals.
Insurance policies are issued to individuals, but also to corporations, trusts, partnerships and other legal entities. There are some noteworthy differences between group and individual policies that may be significant to our readers. While several types of organizations could purchase a group insurance policy, we’ll restrict our discussion to employer-based group policies
Insurance policies are contracts and as such, are governed by the many elements of contract law. While this blog will certainly not prepare you for the bar exam, it hopes to provide some understanding of the legal aspects of insurance policies.
Todd Smith, Level 5 Financial, has earned the Certificate in Blockchain and Digital Assets® from the Digital Assets Council of Financial Professionals and New York Institute of Finance. He joins an exclusive group of financial professionals with the credentials to serve investors who are curious about bitcoin, blockchain and digital assets.
This is a common question and certainly varies with individual circumstances. The most common purpose for owning life insurance is to protect those that depend on one’s income. With that in mind, a potential purchaser might be able to estimate the coverage needed, but it is noteworthy that life insurance is also used for other purposes. Businesses often incorporate life insurance into buy-sell agreements between owners or to protect against the untimely death of a key person. Estate plans for wealthy households often utilize life insurance policies to provide liquidity after the death of the insured. Needless to say, knowledgeable, licensed life insurance agents can be a good source for recommendations, particularly in these special applications.
