It recently occurred to me that I've been writing several articles about life insurance, individual, group, family, and so on, but I haven't taken the time to actually explain the basics of life insurance itself. I'm going to do that in this article.

Life insurance policies pay a death benefit, which is known as the "face value" to the beneficiary of the policy. The face value is nothing more than the amount of the policy. Example, a $100,000 life insurance policy would have a face value of $100,000, a $50,000 life insurance policy would have a face value of $50,000, etc. that's all there is to it.

Besides the insurance company, there are only three other people normally involved with any one life insurance policy. These three people are the owner, the insured and the beneficiary. Let's take a look at each one of these people.

The owner of the policy is the person who purchased the policy and is making the premium payments. The owner of the policy makes all of the decisions regarding the policy, including who is going to be insured and who the beneficiary is.

The insured person is exactly that, the person that the insurance was bought for. In the event that something happened to the person that is insured by the policy, a payment would be made to the beneficiary.

The beneficiary is the person that receives payment in the event that anything happens to the insured. There can be more than one beneficiary for each insurance policy. Example, let's say that one of your parents has a life insurance policy and they pass away suddenly. If you have brothers and sisters there is a good chance that your parents named all of you as beneficiaries of the policy.

Example, let's say that you have one brother and one sister and the policy was for $60,000 even. In this case, you would each receive $20,000. If you're an only child you'd receive it all.

There are only three basic types of life insurance. These are Whole Life, Endowment and Term. Although there are different variations of insurance policies, these are the three that you really need to focus on if you're considering getting a life insurance policy for yourself.

Buying life insurance in Washington State comes with an interesting benefit. When you purchase life insurance in Washington you have a full ten days to review the policy. If you decide after reading all the fine print that you don't want the coverage, you can cancel it without penalty within ten days. This is a great perk to utilize, but before you actually purchase life insurance you're going to want to shop around to find the most affordable rate.

If you are already what many would consider mature, you may want to consider purchasing a final expense policy as opposed to a life insurance policy. The final expense insurance policy provides adequate coverage for funeral expenses as well as any final legal costs. This is a great choice for individuals who don't have anyone to provide for once they pass. Their service, the flowers and taxes are tended to which removes that burden from a friend or relative.

For those who are married, a joint life insurance policy is often the most affordable choice. Many life insurance companies offer a discount if domestic partners purchase a policy together. This is particularly important if children are involved, as a loss of either parent can put a large strain on the family budget.

Many life insurance policies charge a premium for accidental death benefits. This simply means that if you die as a result of an accident, your benefit amount would increase substantially. Ask about having this coverage removed. It will likely lower your premiums.

It's easy to see that a few simple things can actually help save money on life insurance premiums. By utilizing one or even two you'll probably be able to keep a bit more of your hard earned money in your own pocket while not skimping a bit on the life insurance coverage you and your family need.

To find affordable life insurance, whether it be term or permanent life, there are certain underwriting factors that insurance companies take into consideration. By knowing these things you may be able to save time and secure a lower rate:

1. Don't Smoke: Did you know that premiums for smokers are almost three times higher than their non-smoking counterpart? Life insurance companies prefer to insure non smokers and they rate their policies accordingly. Don't think you can get around the smoking question by saying "no" on the application. You may be required to supply a urine sample which will test for among other things, traces of nicotine, whether it is from a cigarette or chewing tobacco). To benefit from the lower non-smoking premium, many companies require that you've been free from smoking a minimum of one year.

2. Lose Weight: You may incur a higher rate if you are more than a certain percent overweight. Health risks associated with being extremely overweight directly affect life insurance premiums.

3. Direct vs. Agent: Purchasing your insurance directly from the internet rather than from a door to door sales person may save you money. Sales agents earn their income based on commissions. You, as the policyholder, when paying your premiums, you are also paying the salespersons commissions. Buying direct from the internet cuts out the middle person and thus lowers your premium.

4. Buy Young: The younger you are when you buy your policy, the cheaper. Life Insurance companies, base their premium primarily on statistical information that predicts a person's chance of dying in a given year. Information provided by the government along with the insurance company's own statistics are combined to calculate what is called 'the cost of death' for each $1,000 of policy benefit. Of course, as you age, the chance of dying increase and so does the premium. Therefore, if you purchase insurance while young, your rate will be lower.

Knowledge is key when shopping for life insurance.