Do You Need Life Insurance? Private Equity Investor Mark Hauser Gets to the Bottom of the Question

Are there any conversations more challenging to have than those regarding life insurance? Selecting a life insurance policy for yourself or a loved one can take time, especially as it has us discussing topics often left undiscussed.

Veteran private equity principal Mark Hauser has long understood the importance of financial planning and preparation. As a financial planner, Mark Hauser implores his audience to read and understand the essential benefits of a life insurance policy.

To better understand life insurance policies and their impact on our loved ones, Mark Hauser explored the topic from his professional perspective.

So, What Is a Life Insurance Policy?

A Life Insurance policy is a legally binding contractual agreement between the insured individual and their life insurance company. Sometimes, you will see an individual insured by multiple entities, such as a CEO insured by their corporation.

Throughout the lifetime of a policy, policyholders will pay regular premiums or individual lump sum payments. When the insurer passes away, their previously named beneficiaries will receive the policy’s face value or ‘death benefit.’

For example, the death benefit of a $400,000 policy would pay that value out to the beneficiary or beneficiaries named in the contract.

What Is a Living Benefit Clause?

Life is hard to predict and impossible to understand, so living benefit clauses can help in cases of extreme emergency. Living Benefit clauses are policies that offer insured individuals special coverage. In these instances, an insured individual with chronic, critical, or terminal illness will see a portion of their death benefit paid out while still alive.

The Living Benefit clause can go a long way toward helping folks in entirely troubling times.

Should I Get a Life Insurance Policy?

Deciding to purchase a life insurance policy can require some thinking and reflection with people you trust. Mark Hauser suggests that his readers undergo a checklist to see if getting a policy is right for them.

Hauser briefly described a few benefits of a life insurance policy to help better his clients make their choices.


  • Reduced Stress and Financial Anxiety
  • Riders Can Prepare You For Multiple Outcomes
  • Tax-Deferred Appreciation For Permanent Policies
  • Replace the Lost Income of an Insured Individual


  • Higher-risk and Older Individuals Will Pay Higher Rates
  • Applicants MUST Pass a Medical Exam

Two Types of Insurance Policies

Once an individual has decided on getting an insurance policy, they are left with a few options. Mark Hauser briefly explored the two policies below to help better his clients make their choices.

  • Term Life Insurance – Lasts between 10 and 30 years and is determined upon application. Life insurance policies allow for renewals, but rates will increase as the policyholder ages.
  • Permanent Insurance – Permanent coverage is much more expensive yet more exhaustive in its coverage. Policyholders can only lose coverage if they surrender the policy or stop making payments.

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