The World of Life Insurance
It is important to compare premium rates before buying. Comparisons can be made via the Internet or by asking a broker.
You can buy a life insurance policy with confidence. First, most states require a 10 day free look period during which you can cancel the policy and get a full refund. Second, insurance is well regulated by the state insurance department, which approves the policy wording and provisions but not the premium rate. The state insurance departments also examine the company’s financial strength every three years. You don’t need a lawyer with you to sign an insurance application.
Term Life Insurance
Term life is contrasted with whole life. The latter pays at any age at death. Term life only pays if death occurs during the term period. Whole Life has cash values which complicate cost comparisons. Term life does not have cash values so comparisons are easier.
You don’t need a lawyer to file a death claim. The beneficiary has the right to receive the proceeds (face amount less any outstanding policy loans and premium payments) in a lump sum. There are guaranteed settlement options which include periodic guaranteed payments or life contingent payments. However, a current annuity rate might be a better deal even if it’s with another company. If you lied on the application about your medical condition and if death occurs during the contestable period (two years after date of application), the insurance company can simply refund the premiums instead of paying the death benefit.
Insurance rates depend primarily on age. You don’t have to provide proof of age, but if you lie, the death benefit will be adjusted to your true age. Gender is another variable and so is smoking history. Some occupations require a flat extra premium. If your health is impaired you might have to pay an extra premium. Larger policies cost less per thousand and will require more detailed medical information.
Credit insurance is sold in conjunction with a loan with the lender being the beneficiary. Premium rates are generally higher and underwriting standards lower than regular life insurance. Besides credit life insurance, there is also credit disability insurance.
Health Insurance Leads
If you express interest over the Internet in health insurance, your name probably will be forwarded to an agent who will contact you.
Life Insurance Policies
It’s a good idea to mention in your will or instructions the location of your policies. A lost policy can easily be replaced by the company.
Discount Life Insurance
Some companies offer discounted rates for applicants who are preferred risks. This includes being in excellent health, having conservative personal habits, and having parental longevity.