A lot of people are asking us why they are not allowed to just list down the people they want as beneficiary. Here’s the answer:

One can only qualify as your beneficiary when you fill out your application form if they are suffering financially when you die. In short, it is expected that these individuals will undergo financial loss because of your death. The usual beneficiaries include your husband/wife, children, extended family and business partners.

What are contingents or secondary beneficiaries? They are the ones will receive a benefit coming from your life insurance. They can only claim the benefits if the primary benefit dies at the same time. For example, if the insured individual and the primary beneficiary dies in a same time.

Will the company refuse to pay if you die?

A lot of people still have doubts on signing up for a life insurance policy because they don’t trust such programs. You have to keep in mind that an insurance policy is a legal contract between the insurer and the company. The law requires every insurance company to pay what is stated in the policy in harmony with the policy provisions. Majority of the policies have a two years giving period that determines if they can refuse payment for material misinterpretation of facts or fraud. A lot of policies exclude those who committed suicide in the first two years of policy.

So you’ve stopped smoking three months ago. How come you are still considered by insurance companies as a smoker?

Usually, life insurance companies have various categories in classifying if you are considered as a smoker or not. Most of them require an insurer to be smoke-free for at least one year. Some even consider three to five years before one qualifies for non smoker rates.
Why in such long period of time? We all know that smokers usually stop their habit for awhile then return to smoking again in a month or two. If you are one of those individuals, better consult your agent about your case.

You decided to sign up for a life insurance policy today. What if you decided to have more or less coverage in two years?
To be honest, there’s no big problem in this issue. All you have to do is contact your insurance company so they can fully assist you in the processing of policy change form and in submitting it to the right department. If you are planning to increase your plan coverage, just call them up so they can provide you with the best and most competitive rates available in the company. The people who are planning to have increase in death insurance needs to go through the same process.

A life insurance policy involves lot of investment in terms of time and money. Like any other financial decision life insurance is not free from traps even though the fact remains that life insurance benefits are innumerable. You need to be very careful in avoiding them as insurance involves great deal of money. To ensure that you don’t commit any blunders it is advisable to double check the terms and conditions of the policy which is a legal agreement. Some of them are: Heavy Taxes on Surplus Amounts, Internet Information and lastly Improper Need Analysis.

(Source:lifecoverpro)

Endowment insurance policies are different when compared with other insurance policies. This policy does not primarily operate to provide life insurance benefits. On the contrary the main objective of an endowment policy lies in offering monetary benefits during the life term of the individual. Life insurance protection comes only after that. Therefore, it is more of an investment than a whole life policy. Endowment life insurance pays the face value of the policy either at the insured’s death or at a certain age or after a number of years of premium payment.

(Source:lifecoverpro)

Variable universal life insurance is a type of cash-value life insurance. That means that, like all life insurance, the policy comes with a cash payout when the policy holder dies. However, as a cash-value insurance policy, it also has a cash value that grows with time. The policy holder can borrow against the value of the policy. Also, the policy holder can choose to invest the premiums with a choice of investment opportunities. With this part of the plan, the policy can fluctuate in the actual value depending on how well the investments do.

(Source:lifecoverpro)

Group Life insurance is an insurance scheme offered by employers to employees. The insurance provides coverage at a nominal investment. Usually the employer deducts a fixed amount from your salary and pays it to the insurer. The group insurance policy is no doubt an excellent scheme but they won’t cover exclusive insurance needs. If you are totally dependent on it for your insurance needs you may not be able to get adequate finance in times of need.

(Source:Lifecoverpro)

If you need protection throughout your life, then you have to be prompt in paying your premium .This is what whole life insurance premium says. In return you can use the amount from your insurance for future investments or other unforeseen key expenses. There are two kinds in whole life insurance. They are ordinary whole life insurance policies and limited pay whole life policies . Whole life insurance is a subcategory of permanent insurance. As per this policy a person will be eligible to obtain protection throughout his life. The only prerequisite is that he should be prompt in making the payments. This type of policy can be preferred if the insured is having long term goals for investment and also wants alternative sources to meet emergency financial needs.

(Source:lifecoverpro)

If you already possess a life insurance policy, it is possible for you to get extra coverage to supplement the actual policy .This helps your dependents even in the absence of you to eek out a proper living. Sometimes the actual policy money may not be sufficient for them to meet the expenses. Thus this supplemental life insurance gives extra financial security to your family. Supplemental Life Insurance is otherwise referred as additional insurance policy. A person who takes a supplemental insurance policy is eligible to get extra coverage. The extra coverage which he enjoys can be few or multiple times more than the actual policy. Such coverage depends on factors like the insurance amount of your actual policy. However the additional coverage cannot extend beyond a prescribed limit which again varies from policy to policy. The aim is to supplement life insurance. The concept of life insurance teaches that the insured’s family and dependents are protected even after his death. Any individual takes a life insurance policy with this main objective. However the coverage in a single life insurance policy is not practically sufficient to meet all the needs especially when the dependents are large in number and the financial commitments are so high.