Life Insurance FAQ's

What Is Voluntary Term Life Insurance?

July 22, 2014

What is voluntary term life insurance?

Usually it is a life insurance plan offered through your employer to provide employees with an opportunity to purchase life insurance coverage through work, and the premiums may be payroll deducted.

In some cases, voluntary group life insurance plans offer life insurance coverage at a higher cost, but with fewer health questions and no laboratory testing.

It's important to keep in mind when considering life insurance that the more health questions they can ask, the cheaper the cost will be for a healthy person, usually.

That doesn't mean Voluntary life insurance is a bad idea, it means you may find cheaper life insurance coverage elsewhere.

For instance, it may be more affordable to buy your own personal term life insurance policy which offers the benefits of choosing the amount of life insurance coverage you need, for the period of time you need coverage, and you can keep the life insurance "In Force" even if you leave your current job.

Posted by hadley hadley. Posted In : Life Insurance FAQ's

Does Term Life Insurance Go Up?

July 18, 2014

Does the cost of a term life insurance policy go up over time?

Yes, the cost of your term life insurance coverage may increase over time. With level term life insurance plans you pay the same level premium for the duration of your term.

So, if you have a 10 year term life policy you would pay the same premium each year for 10 years. However, if you need life insurance to continue after the ten years ends, you would renew your policy and the premium would increase based on your age at renewal.

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Posted by hadley hadley. Posted In : Life Insurance FAQ's

When does Life Insurance Expire?

July 15, 2014

When does a life insurance policy end?

Life insurance ends either when you cancel your policy, or the life insurance company cancels due to non-payment.

However, your life insurance coverage expires only if you have a term life insurance policy which the term has ended, and you did not choose to renew your policy for another term, which is usually a one year (annual) term.

A permanent life insurance policy does not expire, it provides you with level premiums and lifetime protection.

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Posted by hadley hadley. Posted In : Life Insurance FAQ's

Seniors life insurance over 75

July 13, 2014

Can seniors over age 75 qualify to purchase a life insurance policy? If so, who offers coverage?

Yes, there are insurance companies that offer life insurance for people over age 75.

For example, there are well-known insurers like Colonial penn, Globe Life, and AARP/NewYork Life that provide life insurance plans for people over age 75.

Whether you can qualify for life insurance coverage will depend on the insurer's guidelines for approval, as well as, your age, health, tobacco use, driving record...
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Posted by hadley hadley. Posted In : Life Insurance FAQ's

How Long Can You Have Term Life Insurance?

July 9, 2014

You can have a term life insurance policy for as long as you want.

There is a term life plans available for a term of 10, 15, 20 or 30 years and when one term expires you can renew your policy, the only thing is that you don't get cash accumulation inside the policy over time, meaning you cannot take a loan out of a term life policy.

If you have a 20 year term policy for example and you renew your policy when the 20 years ends, you will have an annual renewable term life poli...

Posted by hadley hadley. Posted In : Life Insurance FAQ's

Can You Take A Loan Against A Whole Life Insurance Policy?

July 7, 2014

Yes, you may be able to take a loan out from your whole life insurance policy.

It usually takes several years before your whole life policy builds up some cash value.

You may be able to take up to 80% of the cash value as a loan, depending on the insurance company regulations for loans.

If you do not pay back the loan there may be taxes to be paid on your loan. Also, if the loan amount is not repaid, it may affect the amount of life insurance provided by your whole life policy.

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Posted by hadley hadley. Posted In : Life Insurance FAQ's

Why Are Life Insurance Claims Denied?

July 2, 2014

When a life insurance claim is denied, it's usually because the death occurred within the first 2 years of the policy being "In Force", which is known as the contestability period, and it's discovered the applicant for life insurance intentionally lied on the application to get the life insurance coverage, or the insured person committed suicide within the first 2 years of being insured.

Once the contestability period expires (first two years), and death occurs, the life ins...

Posted by hadley hadley. Posted In : Life Insurance FAQ's

Reasons People Do Not Own Life Insurance?

June 30, 2014

What are some reasons why people don't buy life insurance?

There's a lot of common reasons for not owning a life insurance policy.

But if you need life insurance you should buy a policy to protect your loved ones.

Some of the most common excuses for not owning life insurance include:

1. It costs too much.

2. I don't understand how life insurance works.

3. I have life insurance through work.

4. I'm healthy so I don't need life insurance.

5. I'm too young to need life insurance.

Here is a complete list ...
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Posted by hadley hadley. Posted In : Life Insurance FAQ's

What Life Insurance is Better Term or Whole?

June 27, 2014

Is term life insurance better or whole life?

The answer depends on your own personal needs and situation.

Term life insurance may be a good idea if you are on a budget, need the most life insurance for your money, or need life insurance for 30 years or less.

Whole life insurance may be a good idea if you really need lifetime protection that will not end, or you want to build up cash value inside your policy over time, in addition to having life insurance.

Term life is temporary and provides pure ...
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Posted by hadley hadley. Posted In : Life Insurance FAQ's

When To Buy Life Insurance For Child?

June 24, 2014

As soon as a child is a few weeks old, insurance companies can issue life insurance policies on them.

That is actually the best time to purchase life insurance for your child.

Child life insurance plans offer the lowest rates at this age and you can lock in that rate for the rest of your child's life, all the while accumulating cash value inside your child's life insurance policy which can be borrowed against or used in later years for retirement with a permanent child life i...

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