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Agents & Brokers
Physicians Life Insurance Company® —
a member of the Physicians Mutual family
How does life insurance work?
Life insurance is a contract between you and an insurance company. You pay the company a premium, and in exchange, they promise to pay your chosen beneficiary (a person or people you select) a lump sum of money (called a death benefit) when you pass away.
Here’s a simple breakdown of how it works:
You apply for coverage
- You choose how much coverage (the death benefit) you want and what type of life insurance fits your needs.
- The insurer usually looks at your health, age, lifestyle and sometimes your occupation to determine your risk.
You pay premiums
- Premiums can typically be paid monthly, quarterly or annually.
- The amount you pay depends on factors like your age, health, lifestyle (e.g., smoking) and the type and size of the policy.
Coverage begins
- Once the policy is active, you’re insured as long as you keep paying premiums.
- If you pass away while the policy is in effect, the insurance company pays your beneficiaries the death benefit. (Payout is dependent on the type of policy.)
Beneficiaries receive the payout
- The money can be used however your beneficiaries choose — help covering funeral costs, paying off debts, replacing lost income or funding future needs like education.
You apply for coverage
- You choose how much coverage (the death benefit) you want and what type of life insurance fits your needs.
- The insurer usually looks at your health, age, lifestyle and sometimes your occupation to determine your risk.
You pay premiums
- Premiums can typically be paid monthly, quarterly or annually.
- The amount you pay depends on factors like your age, health, lifestyle (e.g., smoking) and the type and size of the policy.
Coverage begins
- Once the policy is active, you’re insured as long as you keep paying premiums.
- If you pass away while the policy is in effect, the insurance company pays your beneficiaries the death benefit. (Payout is dependent on the type of policy.)
Beneficiaries receive the payout
- The money can be used however your beneficiaries choose — help covering funeral costs, paying off debts, replacing lost income or funding future needs like education.
Types of life insurance
There are two primary types of insurance policies to choose from: term life and whole life.
Term life insurance
- Covers you for a set period (10, 15, 20, 30 years)
- Generally cheaper, but coverage ends when the term expires (unless you renew or convert it).
Whole life insurance
- Covers you for your entire lifetime as long as you pay premiums.
- Usually more expensive, but can build cash value, which you can borrow against or withdraw during your lifetime.
Think of it this way:
Life insurance is financial protection for your loved ones. It helps ensure that if something happens to you, they’ll have money to help cover expenses and maintain stability.
Get more help with life insurance
If you have questions about your life insurance options, talk to one of our friendly agents! They’re happy to help.
Call us at
1-800-228-91001-800-228-9100
Josh G.,
Helping customers since 2023