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Average Life Insurance Payout Time

If you are wondering how long it takes for a life insurance company to pay out life insurance benefits, you should know that there are a variety of factors that determine this. How long it takes to receive the payout depends on how the policy is structured, and how long it takes the insurer to conduct any investigations they need to complete, because these investigations can delay a payout. But for the most part, the average life insurance payout time is not as long as you might think it is.

illustration of a green calendar — *Life insurance companies typically pay benefits anywhere from 30 to 60 days.*

The Typical Life Insurance Payout Time

The typical amount of time it takes for a life insurance company to pay benefits ranges from 30 to 60 days, but it can take as little as 2 weeks if the claim is straightforward and cleared quickly by the insurance company.

Factors That Go Into Determining Life Insurance Payout Period

If you are listed as the beneficiary of a loved one’s life insurance policy, after they pass away you will need to gather all of the necessary documents, such as a copy of the death certificate, in order to submit a claim. Most states give life insurance companies up to 30 days to review a claim and make a decision. Different factors can prolong the process, though, such as if there are multiple beneficiaries instead of just one beneficiary.

In addition, if you choose to take the life insurance payment as an annuity, instead of receiving a lump sum, you could receive your first payment as soon as 10 days after the claim is processed.

Other factors that can result in a longer wait time for a life insurance payout include:

The length of time after death that the claim is filed.
If you have all the documentation required for the claim.
If a claim form that you filled out is not correct or incomplete, you will have to resubmit the form, with the correct information, which can prolong the claim process.
If the policyholder died by suicide within two years of purchasing the policy, this could delay the payout up to a year. If the policyholder died by suicide within the contestability period, you could be denied the life insurance payout completely.
If the policyholder was murdered, the payout will be withheld until the investigation by authorities clears all beneficiaries of the crime.

Get Help

If you want to make sure that your family is completely taken care of when you are gone, you need to find the right life insurance policy for you AND know the rules and clauses of the specific policy you choose to go with.

The best way to find the right policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with affordable rates, and give you ideas for how to cut costs. We have listed some companies to work with that will be able to find you the most coverage for the least amount of money. Always check multiple sites to make sure you have bargaining power and to know the different advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

Help! Why Have My Life Insurance Premiums Increased?

Life insurance is usually pretty inexpensive, especially if you buy it when you are younger and healthier. It’s also a worthwhile expense: having a policy will provide a financial safety net for your family. And, in general, you will know exactly how much you need to budget for, since most life insurance policies will remain the same price for the life of the policy. With that being said, though, the premiums of some policies will increase with time, which can come as a big surprise. If you’ve been surprised like this, or if you want to avoid being surprised like this, read on to find out why your life insurance premiums might go up.

illustration of a man with his hand on his head holding a long bill — *Your premiums can increase for multiple reasons. This is increasingly true for certain types of policies.*

Reasons Your Premiums Could Increase

When you purchase a life insurance policy, your premiums are usually set based on a variety of factors, including your health, age, lifestyle, and more. Most term and permanent life insurance policies have level premiums, which means the payments stay the same throughout the life of the policy. But there are situations in which your premiums can go up over time.

A few reasons this can happen include:

Your policy doesn’t have level premiums– Some policies, like increasing term life insurance policies, have benefits that increase over time – with these types of policies, premium rates increase over time, as well. Universal life insurance also has premiums that can go up or down over time.
You have decided to convert your policy– If you have a term life insurance policy that is ending and you have decided to convert it to a permanent life insurance policy, you can expect increased premiums rates. You are now older than you were when you purchased the policy, and your health has probably changed, which can affect your premium rates.
You’ve renewed your policy– The same is true if your term policy is coming to an end and you choose to renew the policy: your annual premiums will change based on your current age and health.

What To Do

If your life insurance premiums do go up, you should contact your insurance company so you can check if there has been an error, and so they can explain why your rates went up. If you’re unhappy with the rate increase, consider other options, including looking for an affordable new policy. There are many kinds of life insurance policies out there to choose from that offer different benefits and premiums rates.

The best way to get an accurate quote in the first place, and not be surprised by your actual premium rates, is to provide as much information as possible when comparing policies from different life insurance companies. There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there!

We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Discussing Life Insurance With Your Children

As a parent, talking about life insurance with your children can be tough. The last thing that you want to talk about with your children is death: no parent or child wants to think about what their lives would be like without each other. But it is important to prepare them financially for the future and discuss your life insurance policy with them. “The talk” might be difficult, but being open and honest with your children about any preparations that need to be made, and making them aware of all your assets, will ensure that they are aware of your wishes, and ready when the time comes.

The Importance of The Talk

man hugginf a woman and child on her lap — *Talking with your children about life insurance will help them understand your wishes.*

According to a survey conducted by State Farm, only 38% of American parents are comfortable talking to their children about life insurance, even though talking about this subject is just as important as any other that teaches your children financial literacy. But while this subject might be a very uncomfortable one to talk about, it has to be done, especially if you are considering purchasing a life insurance policy, or already have one. Talking with them about life insurance will help them to understand your wishes regarding your funeral, and will also let them know that there will be money available to help cover your final expenses, as well as provide for them when you’re gone.

Remind them that your purpose in bringing up the subject is to make sure they know you want to take care of them as long as you possibly can, even after you’re gone. Approach the conversation with love and concern for their future, rather than centering it around death, and you can end up having a very productive talk about what they can expect financially after you’re gone.

Finding The Right Plan

If you want to make sure that your children or grandchildren are taken care of when you’re gone, whether they are adults or minors, you need to find the right policy for you AND know the rules surrounding minor beneficiaries.

The best way to find the right policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with affordable rates, and give you ideas of how to cut costs. We have listed some companies to work with that will be able to find you the most coverage for the least amount of money. Always check multiple sites to make sure you have bargaining power and to know the different advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

Life Insurance Blood Tests and Alcohol Use

If you are considering purchasing life insurance, you might be aware that multiple factors go into determining your coverage and premium rates, including your health, driving record, and even your occupation, lifestyle, and hobbies. Your health is often the most important factor, and although not all life insurance companies require a medical exam, most of them, especially the ones that offer permanent or whole life insurance coverage, will require one. The medical exam will check your BMI, blood pressure, and the doctor will also do routine blood tests to check for certain issues that may affect your overall health, as well as check for signs of alcohol use. If you’ve opted for a permanent life insurance policy, it’s important to understand how blood tests work with the underwriting process, and how they affect your coverage.

Why Do Life Insurance Companies Require Medical Exams?

When life insurance companies decide to take you on as a customer, they also take on your risks, so they will need to know how much of a risk it is to cover you. They will want to know how healthy you are, and whether it is likely that they will need to provide coverage to you for a long time, or if they might only be providing coverage for a limited time because of your health conditions and lowered life expectancy. To determine this, insurers conduct a routine medical exam to determine your overall health, and will decide your premium rate based on your results.

The Importance of Blood Tests

The reason that you will have to undergo blood tests is that they are a very reliable way of determining your overall health and finding issues that can’t be seen with the naked eye. Blood tests can reveal genetic mutations, as well as underlying conditions, like high cholesterol, high blood sugar, liver and kidney problems, and even cancer.

Another thing to be aware of is that the blood tests you will be given will also reveal if your alcohol consumption is higher than average; even if you have simply consumed any alcohol before having your blood tested, your results could end up negatively affecting your premium rates. For example, your blood pressure will rise if you have consumed alcohol within the 12 hours before your appointment, and if you have been drinking heavily for a long period of time, you will be more likely to have health problems. In this case, if an insurer does approve you for a policy, you will have to pay a higher premium for your coverage.

To get the best possible results from your blood test, try not to consume any alcohol 48 hours before the exam, stay hydrated, and avoid caffeine. If you have a drinking problem, consider seeking help, which will not only benefit your health, but will also lower your life insurance rates.

If You Are Denied Life Insurance

Life insurance companies all rate the risk of different medical conditions in different ways. So if you are denied because of a medical condition, there might be another insurer that will provide you with coverage. Remember, too, that there are several different types of policies to choose from that will offer your family protection when you are gone. For example, if you get rejected for permanent life insurance, you could still apply for a different type of policy, such as term life insurance, simplified issue life insurance, or final expense life insurance. You will be accepted for simplified issue life insurance even if you have a pre-existing condition, because this type of coverage does not require a medical exam. The possibilities are endless when it comes to getting a life insurance policy, all you have to do is shop around and work with an agent.

Looking For A Policy?

Your family has financial obligations that will not go away when you’re gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Buying Life Insurance for Your Parents

If you have aging parents, you know the fear of something happening to them, and you want to make sure they are taken care of. And, as difficult as it is to think about, you also want to make sure that you know what their wishes are for the ends of their lives, and that you can afford to pay for exactly what they would prefer. A life insurance policy will cover their final expenses, pay for their funeral, and make sure that you do not inherit any debt that they leave behind. The sad reality is that many older adults don’t have enough savings to cover expenses, but it might be a comfort for you to know that you can purchase a life insurance policy on your parents, with some limitations.

Why Get Life Insurance For Your Parents

There are many reasons to consider buying a life insurance policy for your parents, including if you:

Are paying for your parent’s care as they age
Want to cover health or other expenses now
Want to make sure their funeral expenses are covered
Will have to take on some of their debts

You can opt to purchase a permanent life insurance policy; with this type of policy, you can borrow from the cash value that accrues to pay for any medical or living expenses. Or you can go the term life insurance route to cover only the amount of time you think the policy will be beneficial and needed.

How To Buy Life Insurance For Your Parents

As we stated earlier, it is possible to purchase life insurance for your parents, but you must get their permission to do so first. You can include asking for this consent in a conversation about their wishes for their care as they age, and their wishes for their funeral arrangements. Note that they must be legally competent to sign the paperwork for the policy, and you will also need to show insurable interest, which means you must show that their death will have a financial impact on you.

After you have gotten your parent’s consent, you will have to select a policy, coverage amount, and assign a beneficiary for your parent’s life insurance policy.

Need Help?

Once you have decided to purchase a life insurance policy for your parents and you get their consent, don’t delay in choosing your policy. Remember that age plays a role in determining life insurance rates, so the sooner you buy, the better. If you’re not sure which policy is best for your parents, the best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Is There a Life Insurance Race Gap?

It’s no secret that there is a wealth gap between African-Americans and Caucasians in America. In fact, the net worth of the average Caucasian family is about 10 times greater than the net worth of the average African American family. And the gap exists in all aspects of people’s financial lives, including when it comes to the amount of life insurance that each group has. This disparity is just as concerning as any other aspect of the racial wealth gap, because life insurance is a necessary and affordable way to protect the people who depend on you. After all, death doesn’t discriminate.

Is There Racial Disparity in Life Insurance Coverage?

Surprisingly, African Americans are more likely to have life insurance than Caucasians, but studies show that, on average, they only have a third of the coverage that their Caucasian counterparts have. One study conducted by industry group LIMRA shows that almost half (46%) of African American adults say they need more life insurance, compared with just 38% of Hispanics and 29% of Caucasians who say the same.

What’s Causing the Life Insurance Coverage Gap?

The life insurance coverage gap has a long history: after the Civil War, life insurance companies began classifying African-Americans who were former slaves as higher mortality risks, meaning they were charged more or were denied coverage altogether. This practice of classifying African Americans as high-risk continued until the 1960s, and was a part of years of discriminatory policies that reduced African Americans’ access to medical care, housing, education, and, yes, even life insurance.

Fortunately today, thanks to the Civil Rights Act of 1964, it is illegal to discriminate based on race when evaluating a life insurance application. The Civil Rights Act also put an end to any discriminatory practices that increased premiums for African American holders of life insurance policies.

Still today, though, African Americans are less likely to see life insurance as a way to protect their families’ financial futures, and more likely to see it as a way to deal with the cost of their mortality:

African American adults (31%) are more likely to associate life insurance with paying for burial costs than White (19%) and Hispanic adults (24%)
African Americans (29%) are also less likely than Caucasians (37%) to cite income replacement as a reason to buy life insurance.

Closing The Gap

The fact of the matter is most people, no matter their race, overestimate the cost of life insurance, and think that a policy is something they can’t fit into their budget. But that is simply not the case: there are many different policies to choose from that can start as low as $15 a month!

It is important that life insurance companies make it clear that policies are accessible for everyone, and that there are multiple types of policies to choose from, so anyone can find an affordable policy that provides the coverage their family needs.

The best way to find the best policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with affordable rates, and give you ideas on how to cut down on costs. We have listed some companies to work with that will be able to find you the most coverage for less. Always check multiple sites to make sure you have bargaining power and to know the advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

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