Life Insurance

Life insurance may be one of the most important coverages you can purchase for the financial future of your loved ones. The rules and regulations for life insurance and annuities vary from state to state. Here are a few things you should know about life insurance:

There are a variety of different life insurance products.

Term Life Insurance:

• Guarantees payment of a stated death benefit to the insured's beneficiaries if the insured person dies during a specified term.
• Have no value other than the guaranteed death benefit and feature no savings component as found in a whole life insurance product.
• Premiums are based on a person’s age, health, and life expectancy.

Universal Life Insurance:

• Permanent life insurance with an investment savings element and lower premiums than whole life policies.
• May contain a flexible-premium option, single premium or fixed premiums.
• The cash value earns interest based on the current market or minimum interest rate.

Whole Life Insurance:

• Permanent policy, meaning it provides coverage for the life of the insured unlike a term life insurance policy which expires at the end of specified number of years.
• In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate.
• The savings component can be invested; additionally, the policyholder can access the cash while alive, by either withdrawing or borrowing against it, if needed.
• Some policies are eligible for dividend payments. The policyholder may elect to have the dividends purchase additional death benefits or dispersed directly to them.

A medical exam may be required during the application process. The insurance company may also inquire about your driving record, current medications, smoking status, occupation, hobbies, and family history.

There is a 30-day grace period on many policies, meaning that policyholders can make up for a missed insurance premium without losing their coverage. The coverage would not lapse during the grace period, which means that if death of the insured were to occur during this period, the company would pay the benefit, minus the owed late premium.

Many insurance companies provide policyholders with a 10-day free look period. During these ten day, the policyholder can cancel the policy if not satisfied or they change their mind.

There are many riders that may be available, including but not limited to Accelerated Death Benefit, Accidental Death and Dismemberment, Long-Term Care, Waiver of Premium, Spousal Insurance, Child Insurance, Return of Premium, Term Conversion, Guaranteed Insurability, etc.