Essential Questions To Ask Before Acquiring A Life Insurance Policy

Each policy holder has different motives in acquiring an insurance policy. Perhaps, they are concerned about the financial troubles that their family may experience while planning a funeral. They want to make certain that their immediate family will still enjoy the same lifestyle even if they have departed. They would think about leaving sufficient insurance coverage that could pay off any debts or mortgages. As people seek out for a suitable plan to provide their needs, they have to ask these vital questions before they purchase a life plan. Below are the essential questions to ask before acquiring a life plan:

What Is The Difference Between Term and Whole Life?

Term and whole life insurance policies are the two primary kinds of insurance plan that agents often proffer to their prospective clients. Term life insurance offers coverage that pays a definite amount of money to the beneficiary upon the demise of the insured. This type of policy provides coverage with flexibility and ends at a particular period of time. On the other hand, whole life insurance extends coverage that pays a specific amount to the recipient when the policy holder expires. This sort of life plan also incorporates an investment feature. The plan holder has the choice to convert the policy into cash even before they pass away. Whole life plan is more expensive compared to term life insurance because of its investment feature.

When Does The Policy Expire?

Term insurance plan starts and expires on a definite date. At the time the term ends, the policy coverage also expires and the beneficiary will not receive any benefit at the time the insured passes away. There are policies that include a grace period, which permits the insured to make a payment within a number of days after the expiration date. If the life plan ends, the plan holder will need to renegotiate the terms of the policy at a higher premium.

How Much Life Insurance Do I Need?

Buyers need to find out first the level of insurance coverage they need before they purchase a policy. An individual must also mull over on their financial obligations that they have to pass on to their family members. You should also think about any insurance plan presently owned, such as through the policy holder’s employer. Several insurance agents utilize an insurance calculator to help and guide the shopper in knowing the level of coverage needed.

Do Unmarried Individuals Need A Life Insurance?

A lot of single individual think whether acquiring a life plan could be of great benefit to them. Single individuals with no kids should get life plan coverage to prepare their funeral in the future. Not preparing for the costs of your funeral in the future could turn to a financial burden on your relatives or friends. Moreover, a person with dependents needs to choose a plan that will cover his dependents’ financial needs at the time he dies.

Missing or Lost Life Insurance Policies

Unfortunately it’s not an uncommon story; someone pays the required premiums on a life insurance policy for years and neglects, or forgets, to give the policy, or any information about the policy, to the intended beneficiary. The insured person passes, the policy documents can’t be found, if the beneficiary even knows about it, and the insurance money is never paid out. And those unpaid life insurance dollars run into the billions!

If you think that this is not happening, and you are the beneficiary on a loved one’s life insurance policy, just ask yourself these few simple questions:

1. Do you know the details of the policy?

2. Do you know the whereabouts of the policy?

3. If something happened today, would you know where to find the details?

If you answered, “no,” to any of these questions you’ve got big gaps in your knowledge which could lead to a real financial tragedy.

Further, if you even suspect that you may be a beneficiary, get the details now. Waiting until it’s too late to talk about it can, in addition to the grief caused by the passing of a loved one, cause severe financial hardship. These subjects, we know, are difficult ones to talk about. But to avoid the difficulties of not knowing, THEY MUSTBE TALKED ABOUT.

If, however, you have lost a loved one and are experiencing the difficulty of not knowing, there are some things that you can do. A few of them follow:

1. Go through your loved one’s financial documents for insurance company dividends or premium notices. Many people keep all their important documents in one place; often in a home office, a bedroom closet, or a safe deposit box at their bank.

2. Scan through their current and past checkbooks. It may be that the last premium is paid is recorded there.

3. Check your loved one’s cell phone contact lists and computer email addresses for the name of an insurance agent.

4. Get in touch with the current and/or previous employer who may have a record of a group policy. If your loved one was retired, group coverage may have been converted to individual coverage.

5. Monitor your loved one’s snail mail for a year. Watch for any correspondence from an insurance company.

6. If your loved one’s passing occurred some years ago, you can also check with unclaimed property office of any state where he/she may have lived. If an insurance company is aware of the passing of a policy holder but is unable to locate the beneficiary, after a period of time it has to turn the proceeds over to the state where policy was issued.

Finding a lost or misplaced life insurance policy can be a daunting task but there are ways… and your patience in searching could prove very rewarding. Also, there are services that will, for a fee, assist you in your search. http://www.LostPolicy.com is one such service. Insurance companies are not only willing to give the beneficiary their rightful due, they are obligated to. But it is the responsibility of survivors to make the required notifications and claim any proceeds.

Children Life Insurance Policies – What You Need to Consider

Are you amongst parents who think that the children life insurance policies bring bad luck for your little kids? Please rethink. These insurance policies offer substantial security to your family by protecting your members from the bad conditions that might arrive in the future. Most of the insurance policy holders belong to the age group of 25- 45. Even those engaged with life threatening professions, have insurance covers to protect their lives. However, this in no way means that only an individual who comes under imminent threat must avail the insurance covers.

Since accidents are inevitable, it is always advisable that you are insuring the life of your children with appropriate policies. There are a number of benefits of children life insurance policies which are discussed in this article.

  • There are a number of insurance companies that offer insurance payment options even when a child expires. This is applicable even after the expiry of certain period. The mutual funds mature by the time the child is ready to attain colleges. The financial burden which comes with college education, thus, gets reduced to a considerable extent.
  • The children life insurance policies assist parents who are tiding over loss of opportunity or business losses due to the tragic incident. While mourning, people might lose trade consignments or jobs and there by end up in financially distressful conditions.
  • The insurance policies meant for children can help parents plan a better future for their kids. Parents can offer a better life and career to their children. It is needless to say loss of life cannot be compensated with money. However, the financial assistance offered only helps you to make a fresh start for a better tomorrow.
  • Another good reason why you should purchase children life insurance policies is because you need to pay minimum premium rates over a substantially long period of time. This can be continued till your child starts earning. After your child gets employed it gets renewed to an adult insurance policy.

Get the right policy at ease with online research:

You can come across some of the best kinds of policies online. There are plenty of sites which specialize in finding the children life insurance policies. You need to entail detailed researches for the right price of the policy. You must be sure about your requirements. While you are reeling under financial constraints, insurance policies are the best course of action that you may consider. Evaluation of your goals and requirements will help you to choose the right kinds of policy. This is a must before you decide to undertake an insurance cover for your child.

Children are their prized possession for all parents. Each and every parent tries to ensure maximum security and comfort for their children. The children insurance covers help you to realize your dream and offer the best possible education and life to the children. You can be assured of resources at your disposal that can be utilized in times of needs once you avail of the insurance policies.