PANTA FAMILY


Saturday, April 14, 2007

Common Questions About Life Insurance

"When it comes to insurance, what you don't know can hurt you financially," warns Texas Insurance Commissioner Jose Montemayor. "Knowing about discounts, rate guides and how to file a complaint can save consumers money as well as a lot of grief."
Before you start shopping for an insurance policy, take a look at this list of common questions about life insurance.

Can I have more than one life insurance policy?

Yes. You could have a permanent life insurance policy and add a supplemental term life policy for a short-term need, for example. If you request more insurance coverage than your expenses indicate you need, the insurance company will want proof that a medical condition is not motivating your request.

What happens if I don't make the required premiums?

Typically, you will have a 30 or 31-day grace period. If you pay within this time frame, you won't be charged additional interest. If you don't pay within the grace period, your policy will lapse. With a permanent policy; however, you can usually draw from the cash value to continue your premium payments. This will lower the cash value of the policy, though.

If you are unable to pay because you have become disabled, and you elected a "waiver of premium" provision or rider on your policy, you do not have to pay premiums for the duration of your disability.

What if my policy lapses?

If a policy lapses, most companies allow you a grace period in which to pay your premium and continue the policy. If you have enough cash value built up in your policy, most companies will use part of the cash values to pay the premium due. If you have a term policy and don't pay within the grace period, your policy will lapse and simply end.

Do I need life insurance if I'm a young, single person? An advantage to buying life insurance now is your premiums will be low. If you have dependents in the future, you will have locked in the lowest rates, and you will have guaranteed your "insurability" because you won't have to take a medical test for life insurance in the future.

Are there cases in which I don't have to take a medical exam to buy life insurance?

Group policies don't require medical exams. Unless you are buying Supplemental Group Life, or asking for a higher amount than the standard coverage level for the policy, you don't have to provide medical documents. Most group life insurance enrollments are held annually through an employer (usually larger corporations offer group health benefits).

What do insurance companies look for in the medical exams?

For individual life purchases, you will be classified based on height, weight, nicotine use and other health factors. Your health status will determine what rate class category you fit in, so even if you have some health problems, you could be covered. Your agent or insurance company should explain what criteria determined the class into which you fall.

If you don't qualify for their best rate today, you might be able to improve your rate category if certain health factors improve. For example, a 35-year old woman buys a life insurance policy. She is 50 pounds overweight, has high blood pressure, and is trying to quit smoking. Two years later, her policy is still in force and she has lost 50 pounds, her blood pressure is normal, and she has been nicotine-free for a year. She could talk with her agent about a revision in medical underwriting on her policy, possibly reducing her rates.

If the medical evaluation showed a condition for which she would be classified into a higher rate category, she could remain at her current rate. The insurance company would not reclassify her into a higher rate bracket.

Can I buy a policy on someone else?

Yes, but only if you have an "insurable interest" in that person. This usually means a relative, a domestic partner or live-in companion, or a business partner. There are products such as first-to-die and second-to-die that allow you to insure the life of another.

Can I buy a policy on someone else without them knowing about it?

No, you cannot take out an insurance policy on someone without his knowledge.

Can I name anyone I want as my beneficiary?

While most people choose only their spouse, it is possible to name more than one person as a beneficiary - but only if those persons have an "insurable interest" in your policy. For example, if you have a $100,000 individual life insurance policy on your own life, you could name your spouse and four children to share in the policy equally at $20,000 each.

Do life insurance policies ever cancel each other out?

If I have a credit life policy and a whole life policy, will one not pay out? No. Upon your death (assuming you have paid all the necessary premiums), the credit life policy will pay out according to the terms of the policy (paying off your credit card balance, and so on) and the whole life will pay out according to the terms of its policy (your full death benefit).

Alabama Insurance Regulator David Parsons says regardless of the type of life insurance policy you buy, make sure you get all the facts about the policy and your other options. " It's about making sure your family is properly covered," says Parsons, who urges all insurance customers to take advantage of the consumer services offered by their states. "We believe state insurance departments are the best resource for insurance-related questions and concerns," Parsons says.

Labels:

5 Comments:

Blogger ninest123 Ninest said...

ninest123 09.29
louis vuitton outlet, cheap jordans, tory burch outlet, chanel handbags, prada outlet, michael kors outlet, michael kors outlet online, cheap oakley sunglasses, tiffany jewelry, nike outlet, ralph lauren outlet, uggs on sale, nike air max, christian louboutin, louboutin uk, nike free, uggs outlet, kate spade, oakley sunglasses, ray ban sunglasses, ralph lauren polo, oakley sunglasses, michael kors, replica watches, longchamp outlet, gucci handbags, prada handbags, replica watches, burberry factory outlet, uggs on sale, longchamp bags, uggs on sale, christian louboutin, ray ban sunglasses, louis vuitton, oakley sunglasses, louboutin shoes, ray ban sunglasses, louis vuitton outlet online, michael kors outlet store, nike air max, uggs outlet, michael kors outlet online, louis vuitton outlet, longchamp outlet, tiffany jewelry, burberry outlet, oakley sunglasses

September 28, 2015 at 6:40:00 PM PDT  
Blogger ninest123 Ninest said...

sac guess pas cher, michael kors outlet online, coach purses, coach outlet, true religion outlet, north face pas cher, north face uk, hermes pas cher, michael kors, louboutin pas cher, jordan pas cher, nike free, vans pas cher, kate spade outlet, longchamp pas cher, nike air max uk, nike roshe uk, michael kors uk, nike air max, nike tn pas cher, nike roshe run pas cher, burberry pas cher, ralph lauren pas cher, true religion outlet, timberland pas cher, michael kors, lululemon outlet, new balance, coach outlet store online, longchamp soldes, nike free pas cher, vanessa bruno pas cher, nike air max uk, nike air force, hogan sito ufficiale, lunette oakley pas cher, polo ralph lauren uk, polo lacoste pas cher, true religion outlet, abercrombie and fitch, mulberry uk, nike blazer pas cher, abercrombie and fitch UK, nike air max pas cher, true religion jeans, hollister uk, converse, coach outlet, lunette ray ban pas cher

September 28, 2015 at 6:45:00 PM PDT  
Blogger ninest123 Ninest said...

new balance shoes, insanity workout, softball bats, north face outlet, vans scarpe, abercrombie, nike air huarache, valentino shoes, hermes handbags, beats by dre, iphone cases, mont blanc, p90x workout, north face outlet, nike air max, hollister, mcm handbags, converse shoes outlet, polo ralph lauren, celine handbags, nike trainers uk, ghd hair, reebok outlet, gucci, salvatore ferragamo, nike roshe run, nfl jerseys, babyliss pro, ray ban, soccer shoes, jimmy choo outlet, converse, instyler ionic styler, lululemon outlet, bottega veneta, wedding dresses, mac cosmetics, vans outlet, nike air max, timberland boots, oakley, chi flat iron, asics running shoes, soccer jerseys, hollister clothing, herve leger, giuseppe zanotti, longchamp uk, abercrombie and fitch, louboutin, michael kors handbags

September 28, 2015 at 6:49:00 PM PDT  
Blogger ninest123 Ninest said...

lancel, moncler outlet, louis vuitton, moncler, montre pas cher, moncler, louis vuitton, sac louis vuitton, toms shoes, moncler, canada goose jackets, thomas sabo uk, louis vuitton uk, michael kors handbags, ugg,ugg australia,ugg italia, bottes ugg pas cher, michael kors outlet, barbour, moncler, ugg uk, ugg pas cher, sac louis vuitton, marc jacobs, pandora jewelry, wedding dresses uk, supra shoes, canada goose uk, doke & gabbana, canada goose outlet, canada goose pas cher, swarovski uk, barbour jackets uk, swarovski jewelry, moncler pas cher, juicy couture outlet, coach outlet, moncler uk, replica watches, michael kors outlet online, ugg,uggs,uggs canada, pandora uk, links of london uk, moncler jackets, canada goose outlet, hollister, pandora charms, juicy couture outlet, canada goose, canada goose, pandora jewelry, canada goose jackets
ninest123 09.29

September 28, 2015 at 6:57:00 PM PDT  
Blogger mmjiaxin said...

north face outlet
ugg outlet
beats by dre
michael kors outlet
nfl jersey wholesale
coach outlet
rolex watches for sale
roshe run men
prada outlet online
lebron shoes
hermes outlet
phone cases
christian louboutin outlet
mont blanc pens
michael kors wallet sale
michael kors uk outlet
michael kors outlet online
air jordan 4
fitflops clearance
ralph lauren outlet
mm1216

December 15, 2015 at 5:41:00 PM PST  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home