I had a conversation with a certain John Smith who asked me about his application for Life Insurance. He wants to sign up for the amount that is higher than what was given to him. He is asking me why such thing happens even if he already informed them that he can afford such amount.

You have to remember that the main reason why you purchased life insurance is to protect you against loss. The total amount of the coverage that you have is also the total amount of the possible loss your primary beneficiary will experience. Debt Payment, Estate Analysis and Income Replacements are the usual determinants of coverage amount.

This entry was posted on Friday, May 23rd, 2008 at 5:10 pm and is filed under Life Insurance Policy. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.