life insurance Archives - Page 14 of 27

What is Spouse Life Insurance?

Purchasing a life insurance policy is a great decision when you have a growing family, but you have to remember that your life insurance policy only covers you. Your family will not receive a death benefit if your spouse dies unless they have their own life insurance policy. But what if your spouse does not have a policy? Is it possible for you to take out a life insurance policy on your spouse?

What Is Spouse Life Insurance?

Spouse life insurance is a type of policy that covers your spouse or partner, leaving a death benefit for you and your family if they die. A partner can purchase the policy on their loved one, including a husband, wife, common-law spouse, or domestic partner. This type of life insurance falls into the category of dependent life insurance, which generally provides less coverage than standard policies.

How Does Spouse Life Insurance Work?

If you decide to take out a life insurance policy on your spouse, you will still have to go through the underwriting process – but only if you choose a permanent or term life insurance policy that requires you to do so. Your life insurance company will have to verify that your spouse is eligible to be insured and assess how much of a risk they are so that they can determine their coverage amount and premium rate. Once you have provided all of the required information, your insurer will offer coverage if your partner meets their requirements.

Reasons To Consider Buying Life Insurance On Your Spouse

If you are conflicted about whether you should purchase a spouse life insurance policy, consider the following reasons why it might be a good idea:

Spouse life insurance can replace their income- If your spouse is the breadwinner of the family or head of the house, life insurance is very important to have, so that your family would not have to struggle if your partner were to pass away. Their income probably covers many expenses, including mortgage payments, and you don’t want to lose your house or struggle to pay any other household bills.
You have debt– If you have shared debt or loans, you also share the responsibility of repaying them, even if your partner passes away.
You’ll need help running the house– If your spouse takes care of the household chores, including taking care of the kids, cooking, cleaning, and laundry, and they pass away, you might need to pay someone to help with all of these things, and life insurance benefits can help with this.

Can You Take a Policy Out On Your Spouse Without Their Knowledge?

white question mark in a green circle — *You cannot take out a life insurance policy on your spouse without their consent.*

Both partners in a family need to be covered by life insurance in case the unexpected happens, since each partner has a role and adds value to the household in different ways. But purchasing a policy to cover your partner is something you need to discuss with them, especially since it is illegal to purchase life insurance coverage for your spouse without their knowledge. You must first get their consent and their signature for the policy – even only getting verbal consent to sign the policy can be considered insurance fraud.

If you’re looking for life insurance for you, your partner, or both of you, the best way to find the most affordable policy is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with good 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 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.

What Is Backdating? And How Can it Help Reduce Your Life Insurance Rates?

Life insurance companies use many factors when determining your rates for a policy, including your driving record, health history, and age. The latter is one of the main determinants of your rate: the younger and healthier you are, the cheaper life insurance will be, so some people choose to backdate their policies to lower their life insurance rates. Backdating can be used to lower your age on your policy, which will qualify you for reduced premiums on your policy. But how does it all work? And can it be used against you?

What Is Backdating?

illustration of a calendar — *Backdating can save you money by using the age nearest your half birthday instead of your actual age.*

While it might seem that determining your age for a life insurance policy should be very straightforward, it can actually get a little complicated. Some life insurance companies will use your actual age when you apply for the policy, while others will use your age at your next nearest birthday or half birthday. This means that, for example, if you were to turn 40 on March 4, you would be considered 40 on a policy application only until September 4 ( 6 months after turning 40). If you applied for a life insurance policy after September 4, you would be considered 41 years old to the life insurance company, since that company sets their rates according to your age at your next nearest birthday.

But some insurers allow you the option to backdate your policy. This means that you request the life insurance company assign your policy date to your last birthday, even if it has passed. For example, if you turned 40 in March and it is now November, you will technically be considered 41 to the life insurance company. But, you can request that the insurer backdate your policy to your birthday in March.

Disadvantages Of Backdating

You can only backdate your policy to your last half birthday, and no further than that. It might help to lower your premiums, but you should know that there is a disadvantage to backdating your life insurance policy. If you choose to backdate your policy, your premium payments will be due from the policy date, which means you will have to pay for any additional months from that 6-month mark, even though you were not technically insured at that point.

To return to our previous example: it’s now December, meaning you’re past your six-month half birthday period (September 4), and you decide you want to backdate your policy to your 40th birthday in March. You will get the 40-year-old rate instead of the 41-year-old rate, but will have to pay 4 months of extra premiums.

Should You Backdate?

Although you will have to pay for a few extra months if you want to backdate your life insurance policy, you could end up saving hundreds of dollars in premiums over the years. It makes the most sense for people who are older to backdate their policies, because the older you are, the higher your life insurance premiums will be.

If you are considering backdating, it would be wise to compare policies from different companies and work with an agent who can help you. They will be able to calculate the costs, and determine how much you will save on your premiums monthly or annually if you decide to backdate. They can also determine how much you will need to pay upfront.

To find the right policy for you, consider using online tools, or speaking with an agent. We have provided the top life insurance companies in the nation that offer hassle-free assistance and the most competitive rates below. Always check multiple sites to make sure you have bargaining power and know the different advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

How Life Insurance Works With Your Will

If you have a life insurance policy, you’ve taken an excellent step towards protecting your family’s financial future. And if you’ve taken another step in that direction by writing your will, it is important to understand how your life insurance policy will work with your will. Both will distribute money to your loved ones after you pass, but in different ways. You might be wondering if you should include your life insurance policy in your will, or if you can use your will to distribute your life insurance, so let’s take a look at what you need to know when you have both a life insurance policy and a will.

Is Life Insurance Included In A Will?

last will written in pen — *Your life insurance death benefit can be included in the valuation of your estate in certain cases, but it is not considered an asset.*

A will is a legal document that lays out your final wishes and gives instructions for how you want your assets distributed after you pass away. This does not include assets that you own with other people, like a house, and it does not include your life insurance policy’s death benefit. Your death benefit can be included in the valuation of your estate in certain cases, but it is not considered an asset. This is because your life insurance payout is meant for your life insurance beneficiary once you die, and is only payable after your death in most cases, meaning it should not be included in your will.

The only time that your life insurance becomes part of your estate is if your named life insurance beneficiaries have predeceased you. In this case, the death benefit will be distributed according to your will and the beneficiaries named in it.

Does Your Life Insurance Need To Have The Same Beneficiary As Your Will?

The person/people named in your will and your life insurance beneficiary(ies) do not have to be the same people. For example, you can name your children as the beneficiaries of your life insurance policy, and at the same time, you can use your will to distribute assets to your spouse, or vice versa. You can also choose to make the beneficiary of both your life insurance and will the same person. Your will and life insurance policy allow you to have multiple beneficiaries, as well as primary and contingent beneficiaries. You can also change these beneficiaries at any point in time, if you need to.

Now that you are aware of the difference between the beneficiaries of a will and a life insurance policy, you know how these documents work differently, and how they can work together. Your life insurance policy will go to your specific beneficiary, and that does not necessarily have to be the same person you name as a beneficiary in your will.

If you’re on the lookout for a life insurance policy, there are many different kinds 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.

How Does The Life Insurance Underwriting Process Work?

If you’ve been looking for a life insurance policy, you probably know that you’ll need to go through the underwriting process to determine how much you will pay for your monthly premiums. But just what is this process? It simply means that, when you apply for a life insurance policy, the insurer will gather information about you so they can determine how much of a risk you will be to insure. It might sound a bit scary, but it is a very routine process, and will not prevent you from finding a great policy at an affordable price. While some insurance companies will have different criteria for their underwriting process, there are some general things you can expect.

What Life Insurance Companies Will Look At

In order to determine if they should insure you, and how much they should charge you for premiums, life insurance companies will need to gather information from you to get a glimpse of what your overall life expectancy might be. They’ll want to know if you have a relatively healthy lifestyle, or if there might be anything you are engaging in that could lower your life expectancy, such as smoking or doing a hazardous job. Things like that will be taken into account, which could mean higher rates or possible denial of your application.

The factors that insurers take into account include: clipboard with medical information on it

Medical Factors– Insurers will want to know your height and weight, if you smoke, if you use any prescription or recreational drugs such as marijuana, if you have a history of medical conditions like heart disease or diabetes, and your family’s medical history.
Lifestyle Factors– They will also look at your driving and criminal record, and will want to know about anything risky that you engage in, such as skydiving or even foreign travel.
Financial Factors– Finally, you will have to disclose your current occupation and income, as well as your financial history, including any bankruptcies.

How the Underwriting Process Works

Now to look at how the underwriting process works when you apply for a life insurance policy. Your insurance company will go through the following steps:

Reviewing your application– The insurer will check your application and make sure that the information you provided is complete and correct, including your listed occupation, your date of birth, and what type of coverage you are looking for.
Administering a medical exam– Depending on the type of life insurance policy that you choose, you might have to undergo a medical exam to determine how healthy you are. It will check your weight, height, and blood pressure, and you’ll be required to give blood and urine samples. However, if you choose to purchase a no medical exam life insurance policy, you will skip this step.
Checking databases– After reviewing your application and your medical exam, the insurer will look at some third-party sources to get information, including your driving record and prescription records over the last few years. This is to make sure that you did not lie about your medical history on your application, and to make sure that you do not have any past DUIs or major infractions on your driving record.
Requesting your physician’s statement– This step will usually apply to you if you are older and applying for a large amount of coverage. Life insurance companies might ask your physician for a statement certifying that you are in good health, to make sure that you are not taking out a life insurance policy because you are battling a terminal illness or are likely to pass away soon.

The underwriting process can take up to 8 weeks. Once it is complete, your insurance company will assign you an insurance classification. There are four basic classifications that determine your rate and eligibility for a policy: gold circle seal

Preferred Plus is the best rating that you can receive, and will allow you to get the lowest rates available.
Preferred means you are in fairly good health and can receive affordable premiums.
Select classification means you will be approved, even though you might have a history of previous illnesses.
Standard classification means you have a family history of health problems and other issues, and that you will pay higher premiums.

Every life insurance company has different criteria for its underwriting process, which is why it is important to shop around and compare plans from multiple insurers. 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.

How Does Life Insurance Work During a Divorce?

A divorce is one of the hardest things you can go through in life. On top of dealing with the loss of your love and partnership, you also have to deal with splitting everything you have built together between the two of you. When sorting all of these things out, one of the things you will have to consider is your life insurance policy: what exactly happens to it when you get divorced? Will you need to purchase a new policy?

Is Life Insurance Considered an Asset?

illustration of money — *Life insurance is not considered an asset in a will.*

When going through a divorce, you and your ex will most likely have to split your assets in half between the two of you. An asset is considered anything of monetary value, such as cash, real estate, and any other valuables that you own jointly. Life insurance is considered an asset in some cases, depending on what type of policy it is.

Term life, which covers you for a specific period of time, does not have cash value, so it is not considered an asset. But permanent life insurance, which is a life-long policy with a cash value that grows over time, can be considered an asset because of that cash value. So, if you have a permanent life insurance policy, it might be included in your list of assets, and you’ll have to split the cash value.

What If You Have Joint Life Insurance?

Joint life insurance covers two people for the price of one, which is why it is popular amongst married couples. If you did choose to buy life insurance jointly with your ex-spouse, you will have to consider dividing the policy with your ex-spouse, since joint life insurance policies are typically permanent life insurance policies. Speak to your life insurance company and ask for information on how to split the policy if you are interested in keeping it.

Should You Remove Your Spouse as Your Beneficiary?

If your ex-spouse is named as the beneficiary of your life insurance policy, you can change your beneficiary to someone else without any problems if that is what you wish to do. All you have to do is contact your life insurance company and fill out a form to change the beneficiary. But if you owe alimony or child support, you may be ordered to keep your ex as your beneficiary.

What If You Took a Policy Out on Your Ex?

If you took out a life insurance policy on your ex-spouse and you are named as a beneficiary, you should speak to your attorney about your options. During the divorce proceedings, you might be able to request to keep your life insurance policy in order to protect yourself against loss of alimony or child support payments if something happens to your ex. In some instances, the court can require you to take out a policy on yourself as part of the spousal support agreement.

Looking For A Policy?

Just because you are going through a divorce, doesn’t mean that you shouldn’t have life insurance to protect the financial future of your dependents or business – you might simply have to look for a new policy that better suits your needs. 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.

Tag: life insurance