Can I buy death insurance for my home loan?

Yes. Many home owners buy term life insurance to provide protection on their home mortgage loan in case they die before the mortgage is fully repaid.

Usually, a home owner would select a term life policy with a policy term (duration) that matches the length of time they have the mortgage loan; such as, 15, 20, or 30 years.

In addition, you would select an amount of life insurance protection that matches the amount of money still owed on the home loan.

T...
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What is a life insurance policy death benefit?

The death benefit of a life insurance policy is the amount of money your beneficiaries will receive from your policy upon your death. This is paid out by the insurance company if the coverage was "In Force" at the time of your death.

Your beneficiary makes a claim for death benefits by contacting your insurance carrier after your death. The insurer will advise the beneficiary of the procedures for completing the claim on your life insurance benefit...

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If you are purchasing life insurance you may be wondering what types of death are not covered by a life insurance policy.

Usually, there are several standard exclusions to life insurance policies, which may include death resulting from war, aviation, suicide within the first two years of being insured, or if you die from a health problem you did not disclose on the application for coverage.

Learn more about what types of death are not covered by life insurance.

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The death benefit from a life insurance policy is most commonly paid out as an income tax-free lump sum, unless the beneficiary of your insurance policy chooses to take the benefit as an annuity, or in installment payments. 

A life insurance death benefit can also be split: the policyholder can designate more than one beneficiary, for example, by dividing the benefit equally (or not) between the insured’s family members.

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If you own life insurance you may wonder how the benefits are paid out after you die.

There are a few different options the beneficiary may choose from to receive the death benefit from a life insurance policy, including:

• Lump sum payment.
  
• Checks to drawn on a checking account.
  
• Annuity payment on a period of time.
  

Learn more about how life insurance death benefits are paid out.


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Yes, life insurance coverage is meant to provide a lump sum death benefit payout to the person or persons you select as beneficiaries of your life insurance policy in the event of your death from natural causes, accidents and most diseases.

A natural death or death caused by health-related issues is covered by life insurance plans. In case the policyholder dies due to any type of critical illness or medical condition, the beneficiary(s) of the insurance policy will get the sum assured as the d...

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The death benefit is the amount your beneficiaries will receive from your life insurance policy upon your death. This is paid out if the coverage was "In Force" at the time of your death.

The insurance face amount is the sum that a life insurance policy will pay upon the occurrence of a qualifying event – Death of the Insured Person.

The name comes from the fact that this amount is typically shown on the "Face" or top sheet of the life insurance policy.

The average face amount of individual l...

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Yes, a term life insurance policy covers accidents.

Term life insurance pays out a death benefit if the insured person dies as a result of natural causes, medical illness, or accidental death.

However, some insurance policies may have exclusions for high risk activities; such as, sky diving or auto racing.

So, although term life plans cover accidental death, your coverage is subject to the terms, conditions, and exclusions stated in the insurance contract.

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Does term life insurance come with accidental death coverage?

Yes, it does include coverage for death resulting from an accident.

Term life covered death resulting from natural causes, illness and accidental death.

In addition, there is double indemnity coverage available which pays out twice the death benefit if the insured person dies from an accident.

Learn more about buying term life with accidental death insurance coverage.

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Death benefit insurance is a type of life insurance that only provides a death benefit payout with no cash value inside your policy.

While permanent or whole life insurance may build cash value inside the policy, and provide a death benefit, term life insurance is death benefit only life insurance.

Term life is temporary life insurance lasting for a specific period of time.

If the insured person dies while the policy is In Force, the death benefit is paid out to the beneficiary of the insurance ...

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What is life insurance with a graded benefit and how does it work?

It's a type of life insurance plan that guarantees your approval for coverage even if you have health issues.

In return for insuring you, there are limited death benefits payable the first 2 (or 3) years you are insured.

However, if the insured person dies after the graded death benefit period, 100% of the death benefit is paid out to the beneficiary of the life insurance policy.

Learn more about how a graded death benefit life in...

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What is death benefit term life insurance coverage?

Term life insurance is temporary insurance that provides coverage for a limited number of years.

Term life is death benefit coverage only, with no cash value or investment feature

Term Life only provides a death benefit.

That's why it is referred to as "Pure Protection".

If the insured person dies during the term life policy term, while coverage is In Force, the death benefit is paid out to the beneficiary of the policy, subject to any exclusions...

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Yes, there are life insurance policies that offer immediate death benefit coverage.

In fact, most life insurance is issued with immediate coverage once you have been accepted and paid your first month's premiums - the coverage foes into effect immediately.

However, graded death benefit life insurance policies, also known as, guaranteed issue life insurance, have limited benefits the first 2-3 years you are insured.

That is how they can guarantee your acceptance for coverage even if you have heal...

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How does life insurance work after you die?

Once you have passed away, your beneficiary would need to contact your life insurance company and make a claim on your policy in order to receive the death benefits from your insurance.

That's why it is so important to make sure you let your beneficiary know that you have life insurance, where the policy is located, and what to do once you've died, so they can get the proceeds from your life insurance.

Learn more about how life insurance works after yo...

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What is a death benefit only life insurance policy?

It's a type of life insurance plan that provides a death benefit, but has no cash value or investment feature.

Term life insurance is DBO life insurance, because it is pure protection with no cash value, only a death benefit.

Term life offers protection for a specific period of time, from 10 to 30 years.

The shorter your policy term, the lower your annual cost of coverage.

Learn more about death benefit only life insurance plans.

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Can people over 80 years old get death insurance coverage?

Yes, there are life insurance policies available to insure people over 80 years old.

These senior life insurance plans are available for people ages 45 to 85 and offer Guaranteed Approval with no health exam required and not health questions asked.

You may choose up to $25,000 of life insurance coverage, and request a free quote online for your policy.

Even people with health issues can get insured. 

Here's how to get death insurance for s...

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Do you want to purchase a death insurance policy?

If so, there are several options of coverage to choose from including term insurance, permanent insurance, and final expense plans which pay out a death benefit to your beneficiary upon your death.

Many people choose to buy a small life insurance policy to cover the cost of their final expenses, if they don't have the money saved to pay for their end of life expenses, including the cost of a funeral and burial.

Here's how to buy death insurance c...

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What is mortgage protection death insurance?

It's a type of life insurance policy that pays out a death benefit upon the death of the insured person who holds a mortgage on his/her own home.

The death benefits paid out on the mortgage insurance are used to pay off the outstanding balance on the home loan if the insured person dies.

There are different types of insurance available to protect your mortgage loan.

Learn more about mortgage protection death insurance plans.

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Can I get death insurance to cover the cost of my funeral expenses?

Yes, there are life insurance policies (also known as death insurance) that can provide the money needed for your loved ones to pay for your burial and funeral expenses.

Usually, these are whole life policies with guaranteed approval for anyone who meets the age requirement.

Since they offer guaranteed approval, there is no health examination required and no questions asked about your health.

The average cost of a funeral and bur...

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How does term life insurance compare to accidental death coverage?

They are two different types of life insurance.

Term life pays out a death benefit to your beneficiary if you die from an accident or natural causes.

Whereas, accidental death only pays out a death benefit if you die as a result of an accident. 

And, the insured must die usually within 3 months of the accident in order for accidental death to pay out a death benefit on the policy.

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Living benefits are benefits you can access form your life insurance policy while you are alive.

Usually, the insurer will require that the insured person has been diagnosed with a terminal illness and has a life expectancy of 6 months or less, in order to pay out living benefits to the insured.

Living benefits can help you get money to assist you with your end of life expenses or medical treatment which may prolong your life. You can use the money paid out for living benefits any way you wish....
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Will my life insurance policy pay out a death benefit if I die as a result of an accident?

Yes, standard life insurance policies cover accidental death and natural causes.

However, intentional acts are usually excluded from coverage.

So, for instance, suicide is usually excluded if it occurs within the first two years you are insured (one year in some states).

But, there can be exclusions for certain high risk activities or occupations.

That's why it is a good idea to review all exclusions with yo...
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Unlike traditional life insurance that provides a death benefit only in the event of the death of the life insurance policyholder, accidental death and dismemberment insurance provides additional coverage in the event the policyholder becomes permanently injured in a number of specific ways.

This type of policy traditionally pays a certain benefit for the loss of limbs, with a specific dollar figure assigned to each type of lost limb.

Many companies provide this type of cover...

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What is the probability of a death claim being paid out on a term life insurance policy?

Actually, very few claims are paid on term life policies.

There are a few main reasons for this lack of payout on term policies, including:

• Policies cancelled for non payment of premiums.
• Term life insurance policies being cancelled by the insured's request before the term expires.
• The term expiring while the insured is still alive.
  

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The whole purpose of life insurance is to provide money to your loved ones in the event of your untimely death.

When the breadwinner in the family dies, those left behind can have serious difficulty keeping up with the bills, paying the mortgage and making ends meet.

The death benefit provided by your life insurance policy is intended to help pay those expenses and make moving on easier.

The death benefit from a life insurance policy is typically provided in a lump sum equal ...

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You cannot specifically collect on a life insurance policy for a long term disability, but you can collect if you have a terminal illness.

Some life insurance policies provide accelerated death benefits which you can request and receive of you meet the requirements, which usually includes a terminal diagnosis and you are expected to die within 6 to 12 months.

Accelerated death benefits may allow you to access up to 25% or more of the death benefit from your life insurance polic...

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Life insurance does cover death caused by cancer.

However, it is common for someone diagnosed with cancer to try to purchase a life insurance policy, and at that point in time it is very difficult to get approved coverage.

It may take as long as a couple of years to get a medically underwritten life insurance policy after a cancer diagnosis, especially if your cancer is over stage 2. It also will depend on the type of cancer, treatment needed, and effectiveness of the treatme...

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Life insurance pays the death benefit if the insured person passes away due to natural causes or accidental death during the period of time you are censured under the life insurance policy.

If you want the life insurance policy to pay out a double death benefit in case of accidental death and your policy does not do that as a feature of the policy, you may be able to purchase an accidental death rider.

That way if your death occurred due to an accident, the life insurance pol...

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Life insurance policies pay the face amount of coverage out as a death benefit to the beneficiary when the person who is insured by the life insurance policy dies, or when the policy matures.

If the money is paid upon the insured's death, it goes to the beneficiary. If it is paid upon policy maturity, the money goes to the owner of the life insurance policy.

However, life insurance companies have begun offering living benefits from their life insurance products.  

Many life i...

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Any accident that causes death would be consider accidental death.

An accident is an event which was unintended.

Whereas, life insurance covers death by old age, accident, or intentional death by suicide, if you have been insured for two or more years, one year in some states like Colorado.

Accidental death insurance covers only death resulting from an accident, and most policies require death to happen within a certain period of time of the accident, such as, 30 or 90 days, in order for the dea...
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Life insurance differs from Accidental death insurance in that Life Insurance pays for death of the insured person by any reason (except suicide in the first two years in most states), whereas Accidental death insurance only pays out a death benefit for death of the insured resulting from accidental reasons.

AD&D stands for Accidental Death and Dismemberment. If the death of the insured person is due to falling down stairs, a car accident, or any other type of accident, the ...

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Life insurance death benefits are normally paid in a lump sum to the beneficiary or beneficiaries of the life insurance policy.

Or, life insurance proceeds may be paid in regular payments over a number of years.

Another option is a combination of both payment options, where the beneficiary receives a lump sum with the remainder made in payments over time.

When the life insurance policy proceeds are not taken all at once, there is interest paid to the beneficiary on the money th...

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Yes, life insurance does pay out a death benefit for death resulting from an accident.

Regular life insurance policies pay for death from natural causes and accidents.

Whereas, an accidental death life insurance policy will only pay out a death benefit if the insured person dies as a result of an accident.

However, acts of war and suicide are usually excluded from a regular life insurance policy. Suicide is excluded for a period of 1 or 2 years, depending on the state you live in.

In addition, yo...
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