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About Life Insurance
Life insurance is a unique kind of insurance. Unlike insurance for property, you or your loved ones are being insured against an event that none of us can avoid. The benefit of the insurance generally isn’t even for you, but rather for those that you will leave behind after your death.
Life insurance is primarily used for peace of mind for you as the insured. You know that if something should happen to you, it will still be possible for your family or designated beneficiaries to live comfortably, pay off loan, and manage any lingering medical expenses. Toward that end, life insurance is available in two main varieties, known as term life and whole life insurance.
Term life insurance covers you for a fixed period, such as ten or 30 years. It is less expensive {generally} than whole life insurance, and many people use it when they are younger as protection on a loan in the event that they should have a fatal accident while their mortgage or business loan is still unpaid.
Whole life insurance covers you from the time it is issued until your death or the age at which the policy matures (usually 100 years of age) and pays out the benefit. There are several variations on this policy, some of which may be able to advance you money if you become seriously ill or be used as collateral on a loan or investment.
Life insurance is broadly available from both specialty and mainline insurers. You can get a variety of quotes or make an appointment with an agent to learn more about which kind of life insurance policy is best for you.
Information Needed For A Life Insurance Quote
In order to get a life insurance quote, you will need to provide your quoting agent with information about your needs and your health. This will help them determine which kinds of life insurance policies are the best fit for your needs and your health.
You should be prepared to provide your medical history. In some cases, you may have to go to a licensed medical site for health tests before you can get a final quote and coverage. At the very least, you will need to provide your age, gender, marital status, smoking status, and pre-existing health conditions to get a basic life insurance quote.
Common Life Insurance Policy Features
Life insurance policies have a number of common features related to their payout plans. Some of the common life insurance features are listed below, and they can be mix and match features depending on your policy.
- Lump Sum Benefits. This is one fixed sum paid out to your named beneficiaries or surviving policy owners when death occurs.
- Annuity Payments. This feature divides the benefit of the policy into a series of regular payments, acting as a pension or income for survivors.
- Permanent Disability Payouts. In the event that you become permanently disabled or medically incapacitated, your life insurance may pay out a benefit to you even though you have not yet passed away.
Life Insurance Discounts Available
Discounts on life insurance may be found by combining your life insurance with another life or health insurance policy from the same insurance company. In some cases, you may be able to bundle long term care insurance, health insurance, and life insurance together to earn a discount.
Life Insurance Exclusions To Note
Life insurance policies exclude coverage for suicides in most cases, although this regulation does vary by state and can sometimes be challenged in a court of law. Additionally, if you die while committing a criminal act, your beneficiaries may also be denied coverage. Further, if your beneficiary kills you to activate the policy, in most state coverage is denied as this would result in profiting from a criminal act.
There may be limits on who can be a beneficiary, depending on your policy. If you are choosing someone who is not a blood relative or spouse, you may want to double check the terms of your policy. This is especially important if you have a domestic partner or wish your life insurance policy funds to benefit a charitable organization rather than an individual.
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