Life Insurance Basics

In Rockville, MD, Wellspring Insurance Network Inc. can guide you through the essentials of life insurance policies. When you are ready, you’ll be able to understand the basics and make a decision that is right for you and your family.

Life insurance is a contract between you and your insurance company that states you will maintain your premiums and your beneficiaries will receive death benefits after you die. There are two main kinds of life insurance – term life and whole life.

Term Life Insurance Policies

Term life insurance sets a specific amount of time (term) and while you pay the premiums at a fixed rate for that period. If you die during this term, the company will pay out your benefits to your beneficiaries as long as your premiums are up to date. Terms can be 5, 10, 15, or more years. At the end of the term, you can cancel the policy or set up a new one. The premiums may have increased over the years, and you won’t be able to pay your original amounts.

Whole Life Insurance Policies

Term life is less expensive than whole life insurance, but whole life covers your “whole” life. It not only pays death benefits, but it also gives your beneficiaries a cash value of the insurance. This is an accumulated amount. A cash value matures after 12 to 15 years of continuous payments. Whole life, unlike term life, is guaranteed. It’ll be paid out as long as your premiums are in good standing.

The Rockville, MD insurance agents at Wellspring Insurance Network Inc., can offer you opportunities to sort through the life insurance coverage you will need. They are also available to help you with coverage concerning your home, auto, business, boat, or other insurance policies you would like to establish.

When Did Workers’ Compensation Become a Requirement?

Workers’ compensation finds its roots as far back as ancient history. Ancient Sumerians, Egyptians, and Greek, Chinese and Roman societies had rules requiring compensation for a worker getting hurt while doing work. The modern version seen in the U.S. has its genesis in the Industrial Revolution, where a fast-moving push for greater and greater manufacturing began to create numerous disabilities and permanently injured workers who then became homeless being unable to work. By 1906 Congress passed its first law, named the Employer’s Liabilities Act, which was updated again two years later, according to Wellspring Insurance Network Inc.

Since the beginning of the 20th century, Workers’ Compensation requirements have been added to by various state laws, with Mississippi being the last state to add its own twist in 1948. Today, every state has a set of rules in place for the workplace, and these rules of medical insurance coverage protect both full-time as well as part-time workers. So while the average person thinks of the only salary when considering the cost of an employee, today’s modern employer has an assortment of costs with adding a new hire, and workers’ compensation coverage is one of them.

Many Rockville, MD employers believe it is an extremely expensive burden to running a business with workers, but workers compensation can be lowered significantly over time. A key factor that employers control is prevention and workplace safety. By being proactive at every level, workplace injuries can be lowered or eliminated, and that can lower a policy cost by a big amount with a substantiated safety record. To find out more in Rockville, MD, call Wellspring Insurance Network Inc. Their experts can go through all the available options for a business and match up the right policy for your company.