What is life insurance?
USNH provides four (4) levels of group life insurance through MetLife to provide for a family as a result of an employee’s death. USNH offers a $10,000 basic coverage plan (if you choose this option; you also receive an annual cash back amount) and a 1.5 times salary plan at no cost to the employee. USNH also offers a 3 and 4.5 times salary option of which the first 1.5 times salary coverage is paid by USNH. The employee annual rate is a calculation based on annual salary (regular budgeted earnings) and age In addition you are eligible for accidental death and dismemberment (AD&D) insurance which provides coverage at the same level you select for life insurance plus an additional $25,000. For additional information log on to: http://www.usnh.edu/hr/open-enrollment.
Life Insurance is a contract between you and a life insurance company, which provides your beneficiary with a pre-determined amount in case of your death during the contract term. Buying insurance is extremely useful if you are the principal earning member in the family. In case of your unfortunate premature demise, your family can remain financially secure because of the life insurance policy that you have purchased.
When a person dies, there are many expenses that will need to be paid. These expenses may include such items as funeral costs, burial expense, current bills, and estate taxes. In addition, there may be financial needs the insured would have met if they had remained alive, including family living expenses, mortgage payments, long-term debt, and college costs for children. The Primary Function of a Life Insurance Policy is to provide, upon death of the insured, an amount sufficient to pay for any or all of the preceding costs and expenses. Which expenses or costs are to be provided for, and how much money will be needed is entirely up to the insured.
Life insurance is a contract that binds an insurance company to compensate a beneficiary in the event of the death of the insured person. If the insured person dies, the insurance company will pay a cash benefit to the beneficiary (typically a family member). Life insurance is typically used to protect a family against the economic hardship that could result from the death of a primary income-earner. (Note: If a family has more than one income-earner, it is often prudent to get a life insurance policy for each income-earner.