life insurance policies Archives - Page 6 of 8

What is Insurable Interest in Life Insurance?

When many people think of life insurance, they think of purchasing a policy that will benefit their loved ones after they pass. But have you ever considered purchasing a life insurance policy on another person who you are financially dependent on? If you buy a policy to insure another person’s life that means you will be the beneficial owner, and will receive the benefits after the insured person dies; in order to purchase a policy and get the benefits, though, you will have to prove an insurable interest in, or financial dependency on, the insured person. Before you decide to buy a policy, you need to understand what insurable interest is, and know how you will have to prove it.

What Is Insurable Interest?

african american man and woman looking at each other — *You can take out a life insurance policy on a loved one as long as you can prove insurable interest.*

When it comes to purchasing life insurance, you can’t take a life insurance policy out on just anyone: if you want to buy a life insurance policy on someone else and be considered the beneficiary, you have to be able to show an insurable interest in that person, which means that you would experience a financial loss or other hardship in the event of that person’s death. A good example of people with insurable interest in each other would be spouses wanting to protect themselves from loss of income, or business partners wanting to protect their business from financial loss.

Proving Insurable Interest

Before a life insurance company will allow you to purchase coverage on another person, they will take steps to verify insurable interest, which will usually include requesting identification from the people involved and conducting a phone interview. During this phone interview, the insurer will ask about the relationship between the beneficiary and the insured, because you can only take policies out on certain people. Relationships that guarantee insurable interest are:

Certain essential employees– You can prove that you have an insurable interest in employees who are considered executives, such as the CEO or president of your company, or your business partners, because if they were to pass away your business would experience a loss of profits. Purchasing what is known as business life insurance is common practice.
Immediate family members– It is easy to prove insurable interest in parents, children, siblings, grandparents, and spouses.
Debtors– Creditors can ensure debtors, as long as the debtor consents to the coverage.

Other Relationships

extended family silhouettes with a city background — *Normally extended family members cannot claim insurable interest unless they have proof of dependence.*

As stated above, insurable interest is easy to prove for immediate family members and people who you have a business relationship with; it is harder to prove an insurable interest in other people and, unless you have proof of financial dependence, you will have a much harder time insuring:

Aunts and uncles
Cousins
Nieces and nephews
Stepchildren and stepparents

Insurable interest protects the insured, as well as the insurance company, from insurance fraud, so when applying for a policy, you will have to prove your relationship to the insured, and that you are at risk of financial loss if the insured passes away.

If you are looking for a life insurance policy, either for yourself or someone that you are financially dependent on, know that there are many different kinds of policies to choose from, like whole life insurance, term life insurance, and final expense insurance. If you’re not sure where to begin looking for a policy, 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.

Key Person Insurance & Your Business

Running a company is not easy: not only are you busy with setting up your business, hiring the right people, and staying on top of your bills, you also have to worry about insuring your business so that you’re protected against property damage and lawsuits. But have you thought about insuring your most valuable asset, your key employee/s? There is a way that you can financially protect your business against the loss of a partner or other key employees and the damage this loss can do to the business you worked so hard to build: purchasing a key person insurance policy.

What Is Key Person Insurance?

silhouette of a hand picking up a silhouette of a man amongst other men — *Key person life insurance can help cover costs of hiring and training a new person to replace the key person of a business.*

Key person insurance is a life insurance policy that a business can take out on the life of an owner, executive, co-founder, business partner, or any other individual that is considered critical to the business, and whose death would hurt the company financially. Unlike with personal life and disability insurance, with key person insurance, a business entity buys the policy, is the beneficiary of the policy, and pays the premiums. The policy will help with any losses that stem from the death of your key employee, including protecting your company from profit loss, guaranteeing your business loans, and protecting your shareholders.

In the event of the passing of the key person, your business will receive the insurance payout, which can be used to:

Cover the cost of hiring and training a replacement for the key person
Offset day-to-day operating expenses
Supplement lost revenues until a replacement can be hired

In the instance that your company can no longer operate after the key person passes, the money can be used to:

Pay off any debts
Provide severance to employees
Distribute money to investors

Essentially, this type of life insurance will give your business options other than bankruptcy in the face of the loss of a key employee.

Which Businesses Should Consider Key Person Insurance?

This type of life insurance policy can be especially beneficial for small businesses or startups that have a small team, and are most often used to insure the owner or founder of the small business. But this doesn’t mean that this type of insurance isn’t also useful for larger scale businesses: every business has at least one key employee whose death would cause financial distress to the company.

How Much Does Key Person Insurance Cost?

red money sign next to a green question mark — *The price of key person insurance varies on multiple factors, which is why it is best to compare plans with an agent.*

The price of a key person insurance policy varies depending on multiple factors, including how large of a policy you would like to take out: you can request policies that pay out as little as $100,000 or as much as $1 million. Other factors that insurance companies take into consideration include the insured person’s age and overall health, as well as which type of insurance policy you decide to take out; for example, as with other types of life insurance, you can opt for either a permanent life insurance policy or a term life insurance policy, which is significantly cheaper. In order to find the right plan, you will have to compare different policies from different insurance companies, because they all offer different levels of coverage at different prices.

The best way to find the right key person life insurance policy for your business is by working with an agent who specializes in key person 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 for your business by a financial burden, check key person life insurance rates today.

How To Reinstate A Lapsed Life Insurance Policy

Forgetting to pay a bill can happen to anyone. It might even happen to you with your life insurance premiums, but it is important to be aware that missing payments can lead to the cancellation of your policy, and would leave your loved ones with nothing should something happen to you. If you are struggling to pay your bills and have neglected your life insurance premiums, have no fear! There is a way to reinstate a lapsed life insurance policy so your family is not left financially vulnerable.

What Happens When Your Life Insurance Lapses

calendar with the number 31 on it — *Most life insurance companies offer policyholders a 30 or 31-day grace period, but after that your policy will be lapsed.*

If you fail to pay your life insurance premium for a month, you won’t lose your policy: most life insurance companies offer policyholders a 30 or 31-day grace period after payment is due. Your policy will still be active during the grace period, so if you were to pass during this time, your beneficiaries would still receive the payout. Some insurance companies, though, will subtract the missed monthly premium payment from the death benefit.

You might even be able to go beyond a month without making a payment, depending on your policy:

Term life insurance policies have a 30 to 90-day grace period.
Permanent life insurance policies will allow you to go longer without making payments if you have built up cash value, which you can use to help cover premium payments.

If you go beyond your grace period, or you do not have cash value to cover your payments, your policy will lapse and you will no longer have coverage, which means the insurance company will not pay a death benefit to your beneficiaries when you die.

How Long Do You Have To Reinstate Your Lapsed Policy?

Depending on how long ago your life insurance policy lapsed, you may or may not be able to reinstate your lapsed policy. In most cases you can reinstate your life insurance policy within a certain time frame if you start making the premium payments again, including the ones you missed. Reinstatement procedures vary depending on how long ago the policy lapsed; for example, if your policy has been inactive for:

30 days or less: Most companies will allow you to reinstate your policy without any underwriting or medical questions. You will need to call your insurance company, fill out a reinstatement application, and pay your missed premiums.
30 days to 6 months: Most insurance companies will require you to answer a few health questions when filling out the reinstatement application. They will ask if there have been any changes to your health since the original policy was approved, and they could deny the reinstatement based on your new health status.
More than 6 months: Most insurance companies will require you to pass the underwriting process again.

Steps To Reinstate Your Policy

hand filling out paperwork — *To reinstate your policy, call the company as soon as possible and begin filling out the necessary paperwork.*

In order to reinstate your policy you must:

Contact your insurance company and ask how much you owe them.
Fill in all the paperwork and submit it to your insurance company.
Pay past due premiums along with any penalty/interest the insurance company might require you to pay.
Make sure that all of your future premium payments are made so you can prevent your policy from lapsing again.

Avoiding a Life Insurance Lapse

The best way to prevent a life insurance lapse is to:

Set automatic payments so that the premium is automatically deducted from your account every month.
Use your cash value to help cover premiums if you are having financial difficulties.
Switch from annual to monthly premium payments to help spread out what you owe, instead of paying one big lump sum.
If your policy does lapse, reinstate it immediately so it will be less expensive and you will not have to go through the underwriting process.

If something were to happen to you, your family would be facing emotional hardships, as well as financial ones. Life insurance is a great way to help your loved ones with those financial hardships, because the money they receive will help pay for expenses related to your death, and any other debts or bills they have. If you make the decision to get life insurance to protect your family, they will be taken care of, but you need to be sure that you continue to make your monthly payments. If you fail to make payments, the lapsed life insurance policy will be considered null and void, and your family will not receive any benefits.

If you are in the market for a life insurance policy, or need a new one because you cannot reinstate your old one, you have options. 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.

Do I Need More Than One Life Insurance Policy?

If you’re in the market for life insurance, you’ll come across many different types of policies, and you might be unsure which is the best for you. If you already have a life insurance policy, you might be unsure if it still has enough coverage for your family as your needs change: maybe your mortgage payments have increased, or maybe an unexpected expense has hit your family budget. The question is, if there isn’t one policy that seems exactly right for you, or if you find that you need more coverage, can you choose to purchase more than one life insurance policy? And do you need to?

How Many Policies Can You Buy?

abstract question mark made up of little dots connected — Technically *there* is no limit as to how many life insurance policies you can get.

There are no laws or regulations regarding how many life insurance policies a person can have, so technically you are allowed to purchase as many policies as you want. For example, you can choose to purchase multiple term life insurance policies, which would provide coverage for things like your mortgage, college tuition, or final expenses, and a permanent life insurance policy, which would allow you to leave an inheritance for your children on top of all that.

It’s important to note, though, that while you can have as many life insurance policies as you want, life insurance companies might have some concerns about how many policies you have, so before purchasing more than one policy, you will need to determine if you need more than one.

Do You Need More Than One Policy?

There are certain scenarios in which it makes sense to buy more than one life insurance policy. These situations include:

You need more coverage– If you would like a higher death benefit, you can purchase multiple term life insurance policies and a permanent life insurance policy, or any other combination of policies. Having more than one will allow you to change your coverage amounts, and will help ensure that your family is fully covered throughout the years. For example, if you are growing your family and want extra coverage until your children become adults, you can purchase a second term policy to cover the next 15 or 20 years of their lives.
You don’t want to put all your eggs in one basket– Unfortunately, life insurance companies can go out of business, and if this happens to your carrier, you will lose your policy. In this case, your family will not receive a death benefit if something happens to you; if, however, you have multiple policies, your family’s financial stability will still be ensured in the event of your passing.
You own a business– If you are a business owner, you might need a separate life insurance policy to take care of your family, and one to cover business loans.

When applying for more than one life insurance policy, avoid applying for multiple policies at once: multiple concurrent applications can make it look like you are applying for more coverage than you really need, which can lead to you getting denied. If you are interested in purchasing multiple policies, the best thing to do is to speak with an agent and compare different policies from different companies before you make your decision.

Policy Riders

If you decide that you would like more coverage but do not want to buy another life insurance policy, you have the option of adding policy riders to a policy instead. There are multiple types of insurance riders that you can add on to a policy to get more protection in specific areas, and to fill coverage gaps. For example, you can add a term conversion rider when you purchase a term life insurance policy, which will allow you to convert your term life insurance policy into a permanent life insurance without undergoing a medical exam.

As your life changes and your responsibilities change, you might find yourself needing more life insurance coverage, and the best way to make sure your family is fully protected might be to have more than one life insurance policy. There are many different types of policies to choose from, 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.

Life Insurance For Stroke Victims

According to the CDC, every year more than 795,000 people in the U.S. have a stroke, and 1 in 4 people who suffer from a stroke will have a second one at some point in their life. If you have had a stroke, you know how scary it can be, as well as how difficult it can be to recover and avoid a second one. On top of all of that, you might be worried what would happen to your family if the worst were to happen, and you might also be wondering if you can still qualify for life insurance even if you’ve had a stroke, or even more than one stroke. The good news is that you will still be able to financially protect your family with a policy, but there are some things you need to be aware of.

Can You Get Life Insurance After A Stroke?

illustration of a brain with a red lightning bolt in the middle — *Obtaining a life insurance policy is possible if you’ve had a stroke, within certain limitations.*

The simple answer to the above question is yes, but there are some requirements you will have to meet. For example, if you have had a stroke recently, some insurance companies will not consider your application for 3-12 months after the stroke. This is referred to as a “postponement” period.

In addition, life insurance companies want to make sure that applicants with a history of stroke are taking the proper precautions to prevent another one, which is why they will ask for your medical history and that you undergo a medical exam, unless you opt for a more expensive no medical exam life insurance policy. If you do choose to buy a more traditional life insurance policy, such as whole life insurance, the questions you will have to answer might include:

When did you experience your stroke or strokes?
Was it an actual stroke or a TIA (Transient Ischemic Attack)?
What tests did you undergo after your stroke or strokes?
Have you experienced any lasting neurological issues or other effects?
Are you experiencing any other health issues that are likely to contribute to another stroke such as hypertension, high cholesterol, diabetes, or coronary artery disease?
What medications are you currently taking?

How Much Will a Policy Cost You?

How much you will have to pay for your policy will depend on the life insurance company, and on whether you experienced a mini stroke, a TIA (Transient Ischemic Attack), or a full stroke. Your insurer will also take into consideration how long ago your stroke was: if you had a stroke 6 or more years ago with no complications, the rate you will be offered will be lower than if you have had a stroke more recently; once you pass the 10-year mark, your rates will very likely be only slightly higher than those of someone who has never had a stroke.

The best way to know how much a policy will cost you is to work with a licensed agent who can review your situation and compare different companies’ plans.

Can You Lower Your Rates?

Absolutely! You cannot control all of the factors that go into determining your rate after you’ve had a stroke, but there are some lifestyle changes you can make to reduce your risk and rates: illustration of hands breaking a cigarette in half.

Quit smoking
Reduce alcohol consumption
Exercise regularly
Keep your blood pressure low
Reduce saturated fat and trans fat intake
Follow up with your doctor regularly

What If I Have Had Multiple Strokes?

This can be tricky, but if you have had multiple full strokes, your application for life insurance will most likely get denied – but you do have other options, such as final expense coverage or guaranteed issue life insurance. It is important to note that most insurers that offer guaranteed issue life insurance will cap the death benefit at $25,000 to $30,000 depending on your age, because they are accepting you despite your health being an unknown risk.

If you have had more than one mini-stroke, you might still be able to get coverage, depending on the insurance company; you will need to do some research to compare plans and companies, so you can find out which ones will offer you coverage and for how much.

Strokes are very common: on average, a stroke occurs every 40 seconds and kills one person every 4 minutes in the U.S. If you have suffered from a stroke, we understand that you are worried about leaving your family behind, and that you want to make sure they will be financially stable if you pass away. You can still purchase a life insurance policy, and protect your family, even if you have had a stroke, as long as you are honest during the application process.

There are many types of life insurance policies to choose from and many different companies to compare, so the best way to 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.

Covid-19 and Life Insurance Coverage

The events of the past year and a half, during which we tragically lost so many people to Covid-19, have prompted many people to think more about preparing for the unexpected. After all that has happened, you might be thinking more about life insurance; for example, you might be wondering if a policy will still deliver death benefits if the policy owner dies from Covid-19, or if insurance companies have changed their policies, meaning you’ve missed your opportunity to buy life insurance. So how are insurers handling Covid-19? Do they cover deaths from it? And has the pandemic affected how they are selling policies?

Can I Get Life Insurance?

Life insurance is important because it offers financial protection for your loved ones if you pass away unexpectedly – it’s no wonder, then, that so many people have realized during the pandemic how important purchasing a policy is. In fact, application activity for U.S. life insurance was up nearly 8% year-over-year in 2020 among people under age 44, according to MIB Group’s Life Index. And there’s no need to worry: you can absolutely still purchase a life insurance policy – and thankfully rates have not been not impacted by Covid-19! With that being said, though, there are a few exceptions to be aware of.

What If…

I’ve Been Overseas Recently?

Because of uncertain pandemic conditions in other countries, some insurance companies will postpone your application approval if you have recently traveled internationally. They will also postpone your application approval if you have plans to travel abroad, or if a member of your household has recently returned from travel outside of the U.S. Generally, if you have traveled overseas, you can submit your life insurance application 30 days after the date you returned to the U.S.

If you do not disclose any international travel or plans on your application, your insurance company can deny claims to your beneficiaries.

I Have Covid-19?

Each company will treat your application differently if you have or have had Covid-19, but in most cases insurers will postpone your application for 90 days, or until you have made a full recovery, if you are currently sick. Depending on the severity of your symptoms, though, some insurance companies could postpone your application for up to six months; in addition, if you – and others – suffer from long-lasting effects of the virus, life insurers will incorporate that information into their underwriting standards, which could affect the cost of coverage for Covid-19 survivors in the future. The most important thing to remember, though, is that you need to be honest on your application about having the virus: lying about it will automatically mean that your beneficiaries will not be able to collect your policy’s death benefit.

I Die From The Virus?

Traditional life insurance policies, such as whole and term life, will likely cover deaths from Covid-19, according to spokespeople from industry research group LIMRA, State Farm, and Farmers New World Life.

Your life insurance claims will be paid out, even if you pass away from the virus, as long as you:

Were approved for a life insurance policy, either before or during the pandemic.
Did not omit information or lie on your application.
Paid your insurance premiums and did not allow your policy to lapse.

The Covid-19 pandemic has been hard on many Americans, and the death toll in the U.S. has caused many younger Americans to worry what would happen to their families if they were to pass. The sad reality that many people have passed away unexpectedly from the virus, and have left their families unexpectedly, has put a new perspective on the importance of life insurance.

Remember, you can still purchase a life insurance policy and financially protect your family, as long as you are honest during the application process. If you’re looking for a policy and are unsure where to begin, work with an agent who specializes in life insurance; this is the best way to find the policy that is right for your specific needs. 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.

Tag: life insurance policies