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Want to Donate to a Charity? You Can with a Life Insurance Policy

Many people purchase a life insurance policy to financially protect their families in the event of their passing. But did you know that you can also donate your life insurance policy to a charitable organization? If you don’t have a family who would benefit from a life insurance policy, you should consider purchasing a policy and donating your benefits to a favorite charity as a way to give back to your community. If you are considering contributing in this way, there are a few things to consider before purchasing a policy, as well as a few things you need to know about how to donate the money.

illustration of a man scratching his head with questions around him — *Depending on how much you want to donate, there are different life insurance plans to purchase.*

What Kind Of Policy You Should Get

If you plan on donating your life insurance benefits, great! When it comes to the type of policy or how much coverage you should purchase, it truly depends on your specific situation. It depends on your age, and how long you will need life insurance. For example, if you would like a policy to last you the rest of your life, a whole life insurance policy or permanent life insurance policy would be best. But if you want life insurance only for a certain amount of time, a term life insurance policy would be a better fit.

Ways To Donate Your Policy

When it comes to donating your life insurance policy, there are typically two ways that you can do so. The first way is to name the charity as the primary beneficiary of your policy. If you decide to do this, though, you need to make sure that the policy is still in your name and that you retain ownership, so that you have access to the policy while you’re still alive. This will mean that if you want to borrow from your cash value, you can do so. In addition, if you retain ownership of your policy, you can change your mind about the beneficiary, and give the benefits instead to a family member or anyone else of your choosing. The only downside to this option is that you will not be able to take advantage of any of the income tax deductions that you would typically have access to when making a charitable donation. money, a money bag in a hand and a gift wrapped up

The second way that you can donate your life insurance policy is to transfer ownership of the policy to the charity while you are still alive. One of the main benefits of doing this is that it relieves you of the hassle of maintaining the policy or paying the premiums. If you do decide to donate your policy to a charity while still alive, you can write the donation off of your taxes.

Need Help?

If you want to give back to your community or to a specific charity that is important to you, donating a life insurance policy is a great way to do so. Before you do, though, you should consider speaking to a few different life insurance companies and discussing with them the best policy for you and your situation. 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.

Does BMI Affect Life Insurance Rates?

When you apply for a life insurance policy, your insurer will look at your health, your family history, and even your employment and driving records to determine how much you will pay in monthly premiums for your coverage. Of all of the factors that they take into consideration, your health is usually the one that your insurer will take most into account when setting your rates, since your health gives them a good idea of how much of a risk you are to insure. And one of the things that they consider when looking at your health is your body mass index, or BMI. If you have a high BMI you may be worried that it will be tough for you to get approved for a life insurance policy. But there is some good news: if you are overweight, it is still possible to get life insurance, because there are many different types of policies available.

How BMI Affects Life Insurance Rates

In most cases, when you apply for life insurance, you will have to undergo a medical exam to determine your rates. This exam will include measuring your BMI, which is a simple calculation of your body fat based on your weight and height. The scale is the same for men and women, and it does not account for factors like your body build.

To make sense of the numbers you will see when your BMI is measured, the scale looks like this:

Underweight = <18.5
Normal weight = 18.5-24.9
Overweight = 25-29.9
Obese = 30 or greater

Why do life insurance companies look at your BMI? The higher your BMI, the higher your risk for developing conditions such as heart disease, high blood pressure, diabetes, and even some cancers. And because being overweight means that you are more at risk for developing these health conditions, it also means that you’re more likely to have a shorter life expectancy, and you are more of a risk to life insurance companies.

Every life insurance company has its own set of criteria that will determine your rates for their insurance policies. If you do have a higher BMI, it’s generally not something to worry about, because BMI is only one part of what goes into determining how much you will pay for coverage.

Options For People With High BMI

many weight doors in a row — *There are many different life insurance policies available, even if you are overweight.*

Even if you fall into the overweight or obese category, there are life insurance options available to you. If you are denied life insurance, you can still shop around for policies that don’t require a medical exam, such as simplified life insurance.

The best way to find a great affordable plan is to compare plans from different life insurance companies, especially because each insurer has its own separate BMI requirements, along with different ratings for other factors. In the meantime, while searching, you should consider making some lifestyle changes that can improve your overall health; making these changes will mean that many insurers will be more likely to approve you for coverage, or even possibly lower your premiums.

The best way to find the most affordable policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a company with good rates, and give you ideas for 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 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.

Understanding Life Insurance Clauses

How often do you sit down and read the fine print before buying or agreeing to something? Far too often, consumers make big purchases or enter into contracts without reading what they’re getting into – and purchasing a life insurance policy is often no different. But when it comes to purchasing life insurance to protect your family, there will be clauses in your policy that you need to pay attention to and read carefully: these clauses are important, and the more you know, the better the decision you can make when purchasing your policy, or when you need to make a claim.

Contestability Period

First, it is important to understand what is known as the contestability period of your policy. This is a period of time, typically one to two years after you purchase your policy, during which your life insurance company has the right to review any claims made after your death. If the circumstances of your death are suspicious to them, or if your insurer suspects that you had an undisclosed medical condition, they have the right to investigate, and possibly reduce your beneficiary’s payout, or even deny their claim altogether.

Common Life Insurance Clauses

All life insurance policies generally have one or more clauses or exclusions written into them. The clauses are meant to help protect you: the whole point of them is to make sure that your policy’s contract is carried out in a fair manner.

Some common life insurance clauses and exclusions include:

Freelook period– This allows you to cancel your policy and get a full refund within a specific period of time, typically 30 days.
Grace period– If you miss a premium payment, you w
ill generally have a grace period, meaning your policy will remain active for a certain period, usually 31 days, giving you a chance to pay your premium before the policy is canceled.
Spendthrift clause- If the person you named as your beneficiary is in debt, this clause will protect the policy payout from being claimed by creditors, allowing the beneficiary to receive the full payment.
Misstatement of age clause- If you lie about your age during the application process, your insurer can raise your premiums, adjust the benefit amount, or decide to terminate your policy altogether.
Entire contract clause- If you make any false statements on your application, your insurance company has the right to terminate the contract and deny any payouts to your beneficiary.
Suicide clause- The substance of this clause can differ among different life insurance companies, but typically having a suicide clause in your policy means that your insurer will not pay out any claims if you die by suicide within a specific period after purchasing the policy – typically two years.
Reinstatement clause- If your policy ends up getting terminated because you have fallen behind on payments, you can reactivate it by paying all of the premiums that you have missed plus interest.

Do You Still Have Questions?

question mark faded with 4 question marks in front of it — *If you still have questions, an experienced life insurance agent can help you.*

There is a lot to understand about life insurance policies and all of the rules surrounding them, but speaking to an agent can help make the process easier. A licensed agent from a top-rated insurance company can also help you find the best policy for you: they can help you find an insurer with affordable rates, and give you ideas for how to cut down on costs, as well explain all the ins and outs of each policy.

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.

How Does Life Insurance Work For Military Spouses?

If your spouse is entering the military, they will be offered an array of benefits to protect your family, including health insurance and a life insurance policy. Members of the military are automatically enrolled in life insurance coverage through the military’s Servicemember’s Group Life Insurance (SGLI) program. Spouses and other dependents are also given a different version of this policy, which is known as Family Servicemember’s Group Life Insurance (FSGLI). Find out the difference between these policies, what they cover, and if you should have another policy to supplement them.

military funeral with an american flag over a casket — *If your spouse who is in the military passes, their life insurance (SGLI) can provide you coverage of up to $400,000, depending on the policy.*

Military-Provided Servicemembers’ Group Life Insurance (SGLI)

When your spouse enters the military, they will receive life insurance through the VA’s Servicemembers’ Group Life Insurance, or SGLI, program. They will automatically be given the maximum coverage amount of $400,000, but service members can also choose the specific amount of life insurance coverage they want, beginning in increments of $50,000. The price of these policies is about $30 a month. Service members can have access to these policies as long as they remain in the military; coverage is lost if they leave the military.

Family Servicemembers’ Group Life Insurance (FSGLI)

At the same time that your spouse receives their SGLI policy, you and your family will also be enrolled in the version for dependents of military members, known as Family Servicemembers Group Life Insurance, or FSGLI. While this is a good program, the coverage amount for this type of insurance is usually not enough to cover most military family’s needs. FSGLI only provides up to $100,000 of coverage for spouses and $10,000 of coverage for each dependent child. Premiums for this policy are generally $0.50 to $5.00 per each $10,000 increment, depending on the age of the policyholder, and the price will increase as you age. Premium payments will be automatically deducted from your paychecks. This coverage also ends once your spouse leaves the military.

Other Options

illustration of a family under an umbrella. — *You have other life insurance options for your family other than what the military provides.*

You and your family have other options if you need more coverage than what is offered by the military. Remember, you will need a policy that will at least cover burial costs, as well as one or two years’ worth of living expenses.

If your SGLI and FSGLI coverage are not enough to cover these expenses, you or your spouse can purchase additional life insurance for low rates, you just have to compare plans from different companies to decide which policy suits your needs. For example, if you are looking for short-term life insurance, a term life insurance policy might be best for you, but if you want a policy that will cover you for your whole life, there are multiple permanent life insurance policies to choose from.

The best way to understand how life insurance works, and find the right 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.

Primary vs. Contingent Beneficiaries

There are a lot of things to think about before you purchase a life insurance policy, including what kind of policy you want, how much cash value you are looking for, how long the policy will last, and, not least of all, who will be the beneficiary of your policy, or the person who will receive your death benefit when you pass. What most people are unaware of is that there are two kinds of beneficiaries when it comes to life insurance policies: primary beneficiaries and contingent beneficiaries. It is important to understand the difference, how each works with the other, and if you can have both types on one policy. This will ensure that the right person receives your death benefit when the time comes.

Primary Beneficiary

illustration of a hand holding a money bag — *A primary beneficiary will receive death benefits first, and if they cannot, then a contingent beneficiary will.*

Your primary beneficiary is the primary person that you select to receive your life insurance death benefit when you pass away. Typically this is your spouse or your children. You can choose more than one person as primary beneficiaries, as well as how you would like the death benefit divided amongst them.

Contingent Beneficiary

A contingent beneficiary, also known as a secondary beneficiary, is a person or persons you can add to your policy who would receive your death benefit if something happens to the primary beneficiary/beneficiaries. For example, if you choose your spouse as your primary beneficiary, but they pass away before you, your contingent beneficiary (for example, your children) will receive the death benefit. The contingent beneficiaries will receive the death benefit if the primary beneficiary is dead, cannot be located, or is considered legally incompetent and not able to receive the money.

Primary Vs. Contingent Beneficiary

It is always a good idea to have both types of beneficiary, especially since it doesn’t cost you anything to have multiple beneficiaries. This way, if something happens to your primary beneficiary before the death benefit is distributed, any issues between family members surrounding your benefits will be cleared up. Having a backup will also save your family from going through the court system and paying court fees in order to access your benefits.

About Beneficiaries

You can name almost anyone as the beneficiary to your life insurance policy, including your spouse, children, siblings, parents, or even business associates. Just remember that if you do choose a minor as your beneficiary, they will not be able to receive the payout until they are of age. You can request that the money go into a trust or to a person who oversees the benefits on their behalf.

You can also change your beneficiaries at any time. It is generally a good idea to review your life insurance policy and its beneficiaries when you:

Get married
Have children
Get divorced
Get more assets

Understanding the difference between contingent beneficiaries and primary beneficiaries is important to help your family prepare for the unexpected. You can choose multiple primary beneficiaries, as well as contingent beneficiaries, in case something happens to the primary beneficiary. This ensures that the death benefit is used properly and is not tied up in a legal battle due to confusion or lack of information. Make sure to check your life insurance policy regularly, and update it when needed.

There are many different life insurance companies with different coverage options and prices, which is why it is important to compare all of your options. The best way to do this 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.

Does My Driving Record Matter When Buying Life Insurance?

Your driving record may not seem like a big deal, but it can affect your life in certain ways. For example, if you have accumulated points on your license, the price of your car insurance will go up – but did you know that your driving record can also impact the price of your life insurance policy? One of the things that life insurance companies will look at when determining how much of a risk you are to insure is your driving record. If you seem like a high risk, your premiums will be more expensive, and some life insurance companies might deny you coverage altogether. On the other end of the spectrum, if you’re a great driver, you might be able to get lower rates.

Life Insurance & Your Driving Record

When you apply for a life insurance policy, life insurance companies will request a copy of your driving record, or your motor vehicle report (MVR). The report will most likely include your driving record from the last 5 years, but some reports can go back 10 years or more, depending on the severity of the violations on your record. Once they have this record, they will assess your risk based on your violations, but generally, they will not use speeding tickets from 5-10 years ago against you.

What If You Have Had a DUI/DWI?

illustration of a bottle and a key with a prohibited red sign over them — *If you have a DUI on your record, you could get denied coverage, or have to pay high rates.*

Having a DUI/DWI on your record is one of the biggest red flags for life insurance companies, mainly because being under the influence while driving can lead to an accident, resulting in your death or the death of others. But if you have a DUI or DWI on your record and are wondering if it will be used against you when buying a life insurance plan, the answer is it actually depends on when you were charged with the violation. If you have had a DUI/DWI in the last 5 years, you will either be denied coverage or you will have to pay more in premiums. But it really depends on the life insurance company, since each offers different plans, coverage, and rate options, and each assesses risk differently. That’s why it’s so important to compare different plans from different life insurance companies!

What If There Are Minor Violations On Your Record?

DUIs are taken very seriously by life insurance companies, but what about other less serious marks on your record? Speeding tickets, minor accidents, and other minor infractions might not be held against you as much as other more major violations when purchasing life insurance. Once again, when it comes to rates and how each life insurance company evaluates driving records, it typically depends on the specific company.

If you want to get ahead of the game when applying for a policy, you can request a motor vehicle report from your state’s DMV, review it, and then fill out your life insurance application truthfully. If you don’t include this information, the life insurance company could end up denying your application or your family’s claim and death benefits after you pass away.

You Have Options

If worst comes to worst and you are denied life insurance because of your driving record, you do have other options. You can opt for a no medical exam life insurance policy: with one of these policies, you will not be asked medical questions and the insurance company will not review your driving record. These plans will have higher rates and lower coverage amounts, but you will be able to provide your family with life insurance even if you have no other option for traditional life insurance policies. Also, don’t give up: if you have been denied coverage, you can always apply for life insurance again after some time has passed.

Even if you don’t have a stellar driving record, all hope is not lost. You can still get a great life insurance policy, all you need to do is compare plans from different life insurance companies. The best way to find the right life insurance policy from a company with great ratings 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.

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