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How much does a Life Insurance Policy Cost?

1/21/2017

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The cost of your life insurance policy will depend on:

The type of life insurance policy (Term or Permanent).
The amount of life insurance coverage.
The length of coverage - how long your life insurance will last.
Your personal risk factors, including your age, gender, health, lifestyle, tobacco use, hobbies, occupation, driving record, and height to weight ratio, among other things.

You can request free quotes for life insurance online.

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What is a Death Benefit?

1/19/2017

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The death benefit of a life insurance policy is the amount of money that a life insurance policy pays to the beneficiary of the policy upon the policyholder's death. It is usually untaxed and paid in a single lump sum to the beneficiary.

Upon the death of the insured, the beneficiary must contact the life insurance company and send the required paperwork in order to have the death claim processed by the life insurance carrier.

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What does Life Insurance Cover?

1/18/2017

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Life insurance policies cover the insured person in case that person dies.

So, if you are the insured person under a life insurance policy, and you pass away, your beneficiary (person or persons you choose) receives the death benefit from your life insurance policy.

You (the insured) are covered for death resulting from a covered cause, such as, old age, natural causes, accidents, etc.

However, suicide is not usually covered the first 2 years you are insured (one year in some states).

Learn more about what a life insurance policy covers

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What are some tips on Buying Life Insurance?

1/17/2017

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If you're looking to purchase a life insurance policy you may be looking for tips you can use to help you find the life insurance you need at a low rate.

There are several ways you may save time and money on life insurance coverage.

Some of the most common tips for buying a life insurance policy include the following:

Determine which type of life insurance is right for you - Term or Permanent.
Shop and compare rates on life insurance among several of the leading life insurance carriers to help you save money.
Compare financial ratings of insurance carriers to find the highest rated, most financially secure insurer.
Make sure to consider how long you really need life insurance.
Use a life insurance needs calculator to help you determine how much life insurance protection you really need to meet your family's financial needs.

Here are some more tips on buying a life insurance policy.

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Does a Life Insurance Policy Pay for Your Funeral Costs?

1/16/2017

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There are insurance policies that pay for funeral costs, these are referred to as funeral plans or funeral policies, where the death benefit goes directly to the funeral home to pay for the costs related to your funeral.

However, you could buy a life insurance policy and request that the beneficiary use a portion of the life insurance death benefit to pay for the cost of your funeral expenses.

In addition, some insurers offer guaranteed issue life insurance plans that are purchased for seniors to pay for the cost of a funeral. And, you can get insured even if you have health problems.

To learn more, read this article - Does life insurance cover funeral expenses?

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What does "Term" Mean for Life Insurance?

1/15/2017

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"Term" is the length of time your life insurance policy provides you with protection.

A "term" life insurance policy is temporary life insurance for a set number of years. The duration of the life insurance coverage is referred to as the "term" of your policy.

Level term life insurance has premiums that stay the same each year for the entire duration of your life insurance.e In addition, the amount of life insurance provided by a level term policy stays the same for the term of your coverage.

Whereas, a permanent life insurance policy provides coverage for your entire lifetime, there is no "term", it doesn't expire. However, permanent life insurance costs a lot more money than term life insurance.

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Is there a Waiting Period before Life Insurance becomes Effective?

1/14/2017

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Every policy has a two year suicide and contestability period. Although there is a one year suicide exclusion in some states.

During the first two years the insurance company doesn’t have to payout a claim on your death if the death is due to suicide or due to a material fact that was misrepresented on your application for life insurance.

If you are completely honest on the life insurance application and don’t commit suicide, the policy is fully "In Force" from the date the first premium is paid until you quit paying premiums.

However, graded benefit life insurance policies which offer guaranteed acceptance may have limited death benefits the first two years you are insured. After two years, there is usually 100% coverage provided by the policy.

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What is a Life Insurance Premium Waiver?

1/13/2017

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A premium waiver amendment to your life insurance policy is a feature that allows you to skip paying your premiums but keep your life insurance coverage while you are disabled and can't work in your regular occupation.

In most cases, you must be disabled for at least six months before you are eligible for this benefit.

A disability insurance policy, which will help you pay your life insurance premiums if you become disabled, may cost less than the price of a premium waiver on your life insurance policy.

Learn more about life insurance riders and how they work.

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Why Should Young and Healthy People Buy Life Insurance?

1/12/2017

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You will not always be young and your health may change over time.

Whether you qualify for coverage and how much you pay for your life insurance depends on several factors, including your health, age, occupation, lifestyle, tobacco use and others.

For example, 15 to 20 years from now you may find yourself in a much more expensive category for buying life insurance, or even uninsurable, so you should lock in your low life insurance rates now, if you can.

The point being - you may not qualify for life insurance when you really need it in the future, or it may cost you a lot more money.

Plus, life insurance costs a lot less today than most people expect. Here's how you can compare life insurance rate quotes online from several of the leading life insurance carriers.

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Life Insurance Premiums vs. Life Insurance Proceeds

1/11/2017

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Life insurance premiums are what you pay to the life insurance company for your life insurance coverage.

Life insurance proceeds are what the life insurance company pays to the insured or his beneficiaries as a result of a claimable event, such as the death of the insured person.

Premiums cover the cost of your life insurance policy. This amount is determined by the actuarial department of the life insurance company. The computations take into consideration mortality, as well as expenses such as insurance company overhead and insurance agent's commissions.

Since the life insurance premiums are based on mortality tables, premiums will vary depending on your gender, age, health situation and whether you smoke or not, in addition to other risk factors taken into consideration by the insurer which may affect your longevity.

The life insurance premiums are also dependent on the kind of life insurance policy you purchase. If it's a term life policy, the premiums will be much lower compared to a whole life or return of premium life insurance policy.

The proceeds form your life insuranc epolicy are usually paid tax free, after the beneficiaries have provided sufficient proof as to the life insurance death claim and proof of their identity as beneficiaries.

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