Franklin Life Insurance

The Franklin Life Insurance Company located in Springfield, Illinois was begun in 1884, and a hundred years later, in 1994, they became a member of The American General Financial Group. The company employs approximately 3,000 sales associates and can boast having almost a million life insurance policy owners in the United States.

Life insurance is actually a contract that stipulates that as long as the contract is upheld by the policy owner, meaning that the policy owner pays his premium, the insurer, Franklin Life Insurance Company, will pay an agreed upon sum of money to whomever the policy owner names as beneficiary.

Most life insurance policies have some exclusion in them, stipulating that if the owner of the policy does such and such, and then dies, the life insurance company does not have to pay off. Such exclusions are often related to civil commotions, riots, war, suicide, or if there’s any kind of fraud being perpetrated on the insurance company.

A company such as The Franklin Life Insurance Company makes money by utilizing tables that point to the cost of insurance. This is done by means of mortality tables that are laid out by actuaries.

For instance, the statistically based tables that try to define the premiums and the cost of that particular insurance coverage are essentially based on gender, age and the use of tobacco. Of course general health as well as family history figure in on those statistics as well.

Thus, an insured would pay quite a bit less of a premium if young and in excellent health and does not smoke. The insurance company also takes it into account having to pay off administrative costs as well as the commissions to their agents who have put the insurance policy together.

The Franklin Life Insurance Company then takes the premiums and creates a pool of money from which it can pay the claims, and the administrative costs of that policy. They also invest that pool of money into strong investments that have as high a return as possible, as premiums alone would not allow them to stay ahead of claims, as all persons pass away eventually.

The Franklin Life Insurance Company or others may turn down people for life insurance coverage who enjoy a certain lifestyle. We’ve already mentioned that the use of tobacco is important in deciding whether or not a person would be covered, but also if the person skydives for instance, the lifestyle of that person would strongly come into account in the underwriting of that life insurance. Another instance that may create much higher premiums or non-insurability would be if there were early cancers in the family, or diabetes, for instance.

Life insurance companies such as The Franklin Life Insurance Company require proof of death prior to paying the claim. Ordinarily the death certificate may be used as verification.

Also, check out my other guide on senior life insurance and life insurance comparison

Franklin Life Insurance

franklin life insurance company

Franklin Life Insurance

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