![]() It is the responsibility of the beneficiary to notify the insurance company of your death, which is why it is important to keep your policy information safe and accessible, and keep your beneficiary fully informed.It is also recommended you name a second or third beneficiary, also known as contingent beneficiaries, in case something happens to your primary beneficiary. However, generally, insurance companies will not award death benefits to a minor. There are no restrictions on the number of beneficiaries you can name, or how you decide to divide your assets amongst them. Review existing policies once a year or following major life events such as divorce or remarriage to make sure that you do not need to make changes to your named beneficiaries.Likewise, if you have an existing policy and are considering a new policy, or have an existing policy that lapses, your health may affect your ability to get a new policy or the premiums you will pay.Any false statements on the application could reduce or cancel your coverage. The cost of your policy takes into account your age, height, weight, medical history, occupation, family health history and other personal habits like smoking, as well as whether you regularly engage in activities considered risky by the insurer such as motorcycle riding, skiing, or climbing. You will usually be required to fill out a health and lifestyle questionnaire in order to purchase a life insurance policy and you may need to have a medical exam.Death benefits and cash values are directly related to the performance of investment options you choose. Variable Life policies vary based on the investment performance of the assets in which your premium payments are invested.It is very important with this type of policy to closely review your annual statement and be aware of the cost of insurance, the depletion of cash value, and the policy value. Universal Life policies, which may also be referred to as Flexible Premium Universal Life, let you vary the amount and timing of your premium, as long as the premium that you pay is enough to keep the policy in force.Whole Life policies, which may also be called straight life, ordinary life, or permanent insurance, provide a death benefit regardless of when you die, as long as your policy is active and you pay all necessary premiums.Term polices typically do not have any cash value. ![]() Term Life Insurance premiums generally are less expensive but premiums can increase as you age. Term Life policies provide a death benefit to your beneficiary if you die within the policy term.There are four basic types of life insurance: Be sure that you understand the type of policy you are purchasing and how the benefits are paid when you die, as well as whether there is a cash value should you surrender the policy. When purchasing life insurance, shop around and compare policies and premiums. ![]() If you decide to cancel the policy within ten days of purchasing it, the company will return all of the premiums you have paid.
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