by Angela on October 12, 2010
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What to Ask Us: Anything pertaining to life insurance!
If you are in the market for a life insurance policy and have questions about life insurance terms, types of policies, or how to determine how much you should get… let us help!
Or if you already have a life insurance policy but are discovering you have some questions about it or are considering adjusting your policy to better fit your needs… let us help!
Life Insurance FAQ: Frequently Asked Questions about Life Insurance
Life Insurance Definitions: The Dictionary of Insurance Terms and Definitions
by Angela on October 6, 2010
Q: How do I report a death?
Justin Mack, Insurance Advisor
A: You will first need to phone your life insurance carrier.
Each company may differ slightly in their process when reporting a death claim, when you contact your carrier, you will be instructed on what is needed and how to complete the claim.
Its important to have the following information available when contacting your life insurance carrier:
- Insured’s full name
- Nickname (if any)
- Date of birth
- State of residence
- Policy number(s), if known
- Date and cause of death
- Name of person reporting the claim
- Relationship of the deceased
- Daytime and evening phone numbers and any additional information/comments
- Certified death certificate
by Angela on September 28, 2010
Q: How do I take out a loan on my policy?
Nic West, Insurance Advisor
A: You first would need to determine if you have a policy that has a cash value account. Typically, term life insurance policies do not have cash value, therefore there is no money to take out a loan against. However, there are a few carriers that offer term policies with Return of Premium riders that have the potential for loans.
The policies that offer cash values are typically going to be permanent policies, such as universal life or whole life. When you have a whole life or universal life policy with a cash value account you are able to access to your cash value without canceling the policy by taking out a loan against it. This loan acts as any other loan, in that it must be paid back. If the loan is unpaid, it could negatively impact the death benefit if, and when, a claim is made.
In order to take out a loan from your cash value policy,contact your agent or their insurer to make the request in writing.
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by Angela on September 21, 2010
Q: What should I do if I can’t pay my premiums?
Shelby Greer, Insurance Advisor
A: It is a general rule that life Insurance carriers provide a 30 day grace period for premiums due. However, if this does not suffice, contact your life insurance carrier, because they may have other options to better serve your circumstances.
For example, some carriers offer a Waiver of Premium Rider, which protects you in the event of disability (the company will pay the premiums for you during that time). Other carriers may allow you to lower the coverage amount on your existing policy, in order to lessen the premium payments to a more affordable amount.
If these options do not fit your needs, you can always call your agent and apply for a new policy with guaranteed low rates!
Email Questions to: newsletter@wholesaleinsurance.net
by Angela on September 8, 2010
Q: What is a beneficiary? And, How do I list more than one beneficiary?
Zoena Hill, Insurance Advisor
A: There are at least two important people that should always be included on a life insurance policy, a Primary and Contingent Beneficiary.
These people are who would receive and be responsible for the death benefit payout, should you pass away. The primary person will be the person who will receive the payout amount. You can have more than one beneficiary, however, you would want to include the percentage of how much money each person would receive.
The contingent beneficiary would be listed in the event that the primary was deceased when the coverage amount would be dispursed. The money is paid out to the contingent person ONLY IF no primary beneficiaries are available to receive the funds.
Email Questions to: newsletter@wholesaleinsurance.net
by Angela on August 30, 2010
Q: What is the “conversion or exchange provision” in my term life insurance policy?
Pete Holtrichter, Insurance Advisor
A: This life insurance provision allows you to convert or exchange your level term policy to a whole life or universal life policy with the same company. The conversion or exchange option is probably the most powerful and most overlooked free benefit included in most term life insurance policies. However, not all policies have this provision included.
General Facts:
- You don’t have to re-qualify medically (no new exams, just some basic paperwork). This is great news if your health has worsened since you accepted your term policy.
- You can convert any amount up to the face amount of your term policy (or anything down to $25,000 which is a standard minimum on whole life or universal life).
- You have to take action to convert your policy prior to the end of the term e.g. before the 11th year of a 10 year term policy, and usually before a certain age (varies from age 60 to 75).
- You can usually convert a portion of the coverage amount and keep the balance on the existing term policy. e.g. you can convert $100,000 of your $1,000,000 term policy to whole life and keep the remaining $900,000 of your term policy in-force or cancel the balance of the coverage.
- Whole life/Universal life has lots of flexibility and the huge benefit of guaranteeing a death benefit upon death for your family, remember the adage “term is if you die insurance, whole/universal life is when you die.”
The process of conversion is simple, and your advisor will help you through the process. Because insurance rates increase with age, speak with your advisor today if you want to take advantage of a life insurance policy conversion provision.
