White Board Video for Financial Services
Video Transcript:
How Does Insurance Work?
When you buy certain insurance or annuity products, you’ll notice a Mortality and Risk Expense Charge.This charge is to compensate the insurance company for various risks it assumes under the contract.The insurance contract offers certain guarantees to you – perhaps for your entire lifetime.They must gage your life expectancy and the risk of any uncertain events.In exchange they provide you with peace of mind through the guarantee that they will perform all the provisions of the contract.Essentially, the Mortality and Risk Expense Charge is the payment you make to the insurance company for the risk they take.They are able to shoulder this risk based upon the thousands of people who own these contracts. Because of governmental regulations life insurance companies maintain reserves to make the payments, guaranteed.Got questions? Give us a call today.We’d love to talk with you about how you can successful manage your risk.
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