Not all life insurance policies require a physical examination. However, policies that pay a high death benefit usually do. This physical is typically performed in your home by a paramedic or licensed health care worker. Most exams consist of a height and weight check, blood and urine samples, and an EKG. You will also need to be prepared to answer questions relating to your medical history. In some instances, additional documentation such as a credit history and even your driving record is required.
Who you choose as your beneficiaries is one of the most important
decisions a policyholder makes. You will have the option to designate
one primary beneficiary or multiple ones. If multiple beneficiaries are
designated, you will need to decide how the death benefit is allocated
between them. Beneficiaries are not required to be actual people. Legal
entities such as a foundation, charities, or trusts are also
eligible. As a precautionary measure, you will also need to designate
“contingent” or secondary beneficiaries in the event that you outlive
your primary beneficiary. You should take the time to review your
beneficiaries annually as they can be changed throughout the life of the
policy for any reason. If you have additional questions regarding the process of choosing
your beneficiaries, please contact your agent, and they will be happy
to assist you.
Currently, there are no laws restricting the number of life insurance policies one person can hold. Individuals are also allowed to purchase policies from as many different companies as they want. Frequently, a person will purchase an individual life insurance policy to supplement the one they receive through their employer. No policy cancels another policy out, and all effective policies will be paid concurrently at the time of death.
The ability to borrow money is one of the biggest differences between
term life and permanent life insurance. Only permanent insurance
allows the policyholder to take out a loan against the cash value built
up in the policy. Policyholders are required to repay this loan
including interest, and any outstanding balances owed at the time of
death will be deducted from the death benefit. Term life insurance policies, on the other hand, do not have a loan
option available because they do not accrue cash value. This is why
these types of policies are commonly referred to as “Death Benefit Only”
policies.
While the primary reason for purchasing life insurance is to provide
financial security for your loved ones after your death, many policies
offer benefits that can be used by the policyholder during their
lifetime. Accelerated Death Benefit Portability Waiver Of Premium Cash Accumulation
Terminally ill patients can forgo their death benefit in exchange for a payment equal to the life insurance policy’s face value.
Take advantage of group rates and the convenience of direct billing by
taking your life insurance plan with you when you retire or switch
careers.
This feature allows you keep your coverage even if you become seriously ill or disabled and are unable to pay your premiums.
By paying in excess of your regular premiums, some policies allow you to
increase the amount of your death benefit. Likewise, cash accumulation
can also be used to increase the loan amount available to policyholders
while they are living.
Term Life insurance is the most affordable type of life insurance because it only provides coverage for a limited period of time. Policies
vary, though, and can range from five years up to thirty years. As long
as the policyholder dies within the time period specified in his or her
policy, the insurer is obligated to pay the benefits in full. The risk with buying term life insurance is that the policyholder
may “outlive” the coverage. When this happens, the policy terminates,
and you are given the option to renew. However, the new premiums will
most certainly be higher because you have aged. Still, term life
insurance is an attractive option for many people because it allows
them to buy coverage at a lower cost and when it’s needed most. Permanent life insurance, on the other hand, offers lifetime
protection as long as you continue to pay your premiums. All age groups
can take advantage of the security and peace of mind that permanent life
insurance offers. Retirees can guarantee that their loved ones will be
provided for after they are gone, and young people looking to start a
family can take advantage by buying early and locking in a great, low
rate. In some instances, a combination of both term life and permanent
coverage is desirable. Contact your SilverLeaf Insurance Agent today to
determine which solution is best for you.
There is no “one size fits all” policy that is right for everyone,
because no two people have exactly the same needs. An elderly widow who
only wishes to pay for her own burial expenses would require a much
different policy than a 40 year old who is the primary earner in a
family with children. While experts disagree on the exact formula for income replacement,
most estimate that, at a minimum, a person needs coverage equal to six
times their annual income. Ultimately, the only “wrong” answer is no
coverage at all. Contact your Silverleaf Insurance agent today, and they can assist you
with balancing future needs with your current financial capabilities.
If you died tomorrow, how would your family pay for your funeral and
burial costs, outstanding medical bills, and any other outstanding
debts? How would they pay for their own ongoing living expenses such as
food, utilities, and a mortgage? Life insurance is a safe, simple way to guarantee that the people who
depend on you now will be taken care of after you’re gone.
Beneficiaries receive a tax-free cash payment that ensures their
standard of living and way of life does not suffer. Please, don’t make a
tragic situation even worse by failing to plan now. If you are the
primary earner in your household, life insurance is not an option. It’s a
responsibility. Contact your Silverleaf Insurance Agent to discuss your life insurance options today.