Life Insurance Policy Explained All The Fine Print

After purchasing your life insurance policy and having it approved you finally get the document in your hand. Take some time to read it in order to get a true understanding of the document you hold in your hand. I beg of you not to put your life insurance policy away for safe keeping until you have examined every last phrase in the contract itself...

Let us now examine the mechanics of a life insurance policy. This is an example of what is usually included in your policy. The actual explanations will differ somewhat from company to company.

Section 1

In the first section of the policy you are given you a brief description of the benefits included therein.

• How much the life insurance policy is for; that is, how much is payable on death.
• The type of policy and name of the plan purchased. You know, whether it is a whole life policy, term policy, variable life policy etc.
• The name of the insured. That is the person whose life is insured.
• Any additional benefits or riders, such as waiver of premium in case of disability...or the accidental death benefit rider sometimes referred to as "double indemnity" by which twice the face amount of the policy would be paid if the insured died in an accident of any type.
• The age of the insured. A life insurance company takes into consideration age, health and occupation when underwriting a life insurance policy. Usually the older a person is the more a life insurance policy costs.
• The policy number. This is important. You or your beneficiaries will refer to this number when dealing with the life insurance company.
• Also listed here is whether the policy is issued preferred, standard or rated...that is when you are charged an extra premium because of your health, occupation or avocation.
• The number of years the policy is issued for. e.g. 10 years, 20 years, or for life.
• Here they show the annual premium. Although all premium calculations are initially made on an annual basis, the insured may pay the premium semi annually, quarterly or monthly.
• The number of years the policy is payable. A life insurance policy may be issued for life but the premium payer may only have to pay premiums for say 10 years. This is known as a limited pay life policy.

• The date of issue. This is the date the life insurance policy goes into effect.
• The incontestable period and contestable period. Let us assume you applied for a life insurance policy and lied on the application that you never had cancer. However, through a report from the Medical Information Bureau the insurance company discovers that you were diagnosed with melanoma 2 months ago, they can withdraw the policy, and refund your money. If, however, they discovered this after the contestable period had expired, they could not take the policy away from you. Contestable period is usually 1 year.
• Suicide clause. If a person plans to buy a policy and then commit suicide, they should forget about it. Although insurance companies pay benefits if a person commits suicide, they give you a long time to think about it. Written in the suicide clause is a waiting period of one or two years. In other words don't go and buy a policy with the intent of committing suicide. Your family will receive nothing.
• Definition of dates. Here it is explained that the suicide period and contestable period begin at the date the policy was issued. Policy dates are stated in this policy itself.
• Misstatement of age. If the insured mis-states his or her age on the application for the policy the amount of insurance shall be whatever insurance the premium paid would purchase had the correct age been given.

Section 2

This section describes the rights of the owner of the policy.

• The owner may exercise all rights of the policy without the consent of the beneficiary.
• The owner may assign the policy as collateral for a loan.
• The owner also has the right to transfer ownership of the policy to another person. Satisfactory written proof of such a transfer must be given to the company.

Section 3

This section describes...

• How premiums should be paid.
• The grace period for premium payments - usually 30 days.
• The refund of unused premium at death. Let us suppose you paid your premium for the entire year. If you died one month after paying the life insurance would pay the proportionate balance to your beneficiary together with the face amount of the policy.
• Should the policy lapse how it can be reinstated. You can reinstate by paying the back premiums or re-dating the policy. You may need to prove you are insurable to effect reinstatement.

Section 4

Here you receive an explanation of...

• What life insurance policy dividends are and how they accrue. Dividends are applied to a permanent life policy if the company does well.
• How dividends can be used.
• What paid up additions are. They are tiny single premium policies

Section 5

This section usually clearly explains...

• Cash values. Permanent policies have guaranteed cash values.
• Extended term insurance. The period of time your policy will remain in force if you stop paying. The full face amount will be in force here.
• Paid up insurance. A reduced amount of insurance can be chosen. In this case the paid up policy will remain in force until maturity.
• Here they also show the cash surrender value of a policy.
• There is also description of what happens if premiums are not paid.
• An explanation of how the company determines cash values.

Section 6

This section discusses policy loans.

• What is a policy loan?
• How can you get a loan on your policy?
• What effect will a loan have on the life insurance policy?
• What is the interest rate charged by the insurance company on such a policy loan?

Section 7

• Here you learn that you can change your policy to another type of plan within certain limitations. Even the insured can be changed with evidence of insurability.

Section 8

This section describes the term beneficiary.

• How to change your beneficiary any time in the future if you should desire to do so.
• Here is also described the marital deduction provision for the spouse of the insured and the succession in interest of beneficiaries, e.g primary beneficiary and contingent beneficiary.

Section 9

Section 9 describes payment of policy benefits. For example:

• Payment at surrender of the policy.
• Payment at the maturity of the policy.
• Payment at death.
• Payment plans of policy proceeds.
• Right to increase income under payment plans.
• Guaranteed payment tables.

Section 10

This section describes fully any additional benefits applied for.

• The waiver of premium benefit is covered in this section.
• The accidental death benefit rider is explained.

Section 11

• Here you will find a copy of the application, which is also a part of the policy.

Life insurance Buying Tips - Ask Yourself These Questions Before Buying Life Insurance

Home

Life Insurance buying is one of those necessary things that you may have to force yourself to do at some time during your busy schedule. There never seems to be a right time to to this. We, however, must take the time to first give the subject, life insurance buying, ample thought and then take action.

What will happen to your family when you die? Would they be provided for? Life Insurance is the solution and we can help. Compare Multiple Quotes from Highly Ranked Carriers and Save up to 70%! Getting your quote is easy and FREE. Click Here And Save

Some people don't want to take the time to think about buying life insurance because when you do so you must think about death, or to be more accurate, what would happen to your loved ones after your untimely demise. I would urge you to put away the emotional considerations and take the time to open your mind and kindly and responsibly give this vitally important subject your capable consideration.

When considering life insurance buying try to arrive at the amount that best fits your particular situation. In order to arrive at an intelligent and accurate decision as to this amount you need to ask yourself some very important questions...

These are the same questions any capable life insurance agent would ask you. If they don't ask these questions when you are doing your life insurance buying they are not interested in your welfare and are only trying to make a sale. They don't care if the policy will fit your particular situation. Neither are they considering the welfare of your family.

• Am I buying a life insurance policy to cover my funeral expenses , or do I want to pay for this out of accumulated cash? Life insurance is the advisable path to take because of cost and tax considerations.
  
  
• Is this policy to be used to offset estate taxes ? When an estate is above a certain amount a tax is levied by the Federal Government. If a life insurance policy is not part of your estate there is no tax payable from the proceeds. The proceeds of this policy can be used to pay the taxes on the other part of your estate.
  
  
• Should I use this life insurance policy to provide an income for my family? There are many advantages to providing an income through life insurance. There are tax advantages. You can set up the income in such a way that the beneficiaries cannot outlive it. See page on life insurance settlement.
  
  
• Should I provide a lump sum to my family? If so why. The answer to this may vary. Give consideration to the experience of the beneficiary in handling large sums of money. Will your desires for this insurance come to fruition.
  
  
• Do I want to set up a charitable fund or grant for an organization that I hold near and dear? Let us assume that life has been good to you. You have fulfilled all or most of your dreams. You have seen your children face life with confidence and victory in most things they have tackled, and whenever they were not victorious they were able to turn their losses into a learning experience, thus in the end winning. You see other people that need help. You do as much as you can while you are alive. Do You want this to continue even after you die. You can set up a grant, or charitable fund through life insurance.
  
  
• How about a college fund for your children or grandchildren? Have you thought about this? Is this a good idea? What is the best way to do this. Is life insurance a viable vehicle to use for this fund...if so, why?
  
  
• Should I set up a pension fund for myself. Can a life insurance company assist me in this matter. What about a joint retirement income with a wife and husband that neither can outlive? Is this an intelligent consideration.

Give these things serious thought when doing your life insurance buying. May be you should discuss these questions with your spouse.
Don't pay too much for life insurance! Shop and compare Quality Quotes from Quality Carriers first.
Just answer a few quick questions then get your Quotes. The process is Easy and FREE. Click Here For Free Quotes

Low Cost Term Life - Whole Life - Universal Life Insurance

Life Insurance - One Stop Shopping

Satisfaction Assured - Totally Risk Free

• eLife Policy - Get Up To $500,000 Quality Term Insurance Coverage From A Carrier Rated A+ By A. M. Best - No Medical Exam Required - No Agent Visit - Approval In Minutes, If You Qualify.
  
  
• AccuquoteLife - Compare Low Cost Life Insurance Quotes From Highly Rated Carriers - Apply For Term Life, Whole Life And Universal Life Protection Online - Save Up To 70%.
  

Take a moment to think about how little life coverage really costs. Most term policies require a premium of less than $1 for every $100 of coverage. For permanent policies you put out more but the cash values and dividends earned over the years are usually sufficient to offset the additional premium outlay.

Regardless of which way you choose to go you end up with a good deal for your dollar. You protect your family at a very low cost. Keep in mind that dividends applied to permanent policies are not guaranteed. Whichever insurance type you select you will find suitable policies for the protection of your family here. You can also get your policies here for your business needs.

The eLife Policy is the finest "no medical term life policy" available on the Internet. No medical examination is required, there is, however, a $500,000 maximum.

The wide range of policies offered by AccuquoteLife are arguably some of the least costly available on or off the Internet. Here you have the unique opportunity to choose from the finest carriers in the industry regardless of which type you want to purchase. There is no limit to the amount. They even make a Calculator available which you can use to find out how much coverage you really need.

The links immediately below as well as those at the beginning of the page will take you to one or more of the above-mentioned sites where you can choose which Carrier you want to do business with. We have selected the finest quality companies in the business which represent the Most Reputable Carriers in the Insurance Industry. With these Companies you not only get the policies you desire but you have the unique opportunity of building lasting business relationships with them, if you so desire. To put it simply, you can always return to get additional information about your insurance at any time in the future.

• eLife Policy - Get Low Cost Term Insurance Without Having To Do A Medical Exam - Just A Few Health Questions - No Agent Will Visit. Get Coverage In Minutes!
  
  
• AccuquoteLife - Apply For Quality Term Life, Universal Life And Whole Life Insurance. - Very Low Premiums - No Limit To Death Benefit Amount.
  

If you want details on each type of life policy click on the links below then return here.

Put Up Your Life Insurance Policy For Sale If You Need To

Home

Life insurance policy for sale. As people get older they have a tendency to develop the type of illness that would not even be a second thought when they were in their young carefree years. Some people develop cancer in one of it's varying forms, some heart and blood pressure problems, some diabetes and even some ailments they have never heard of.

What would happen to your family if you died? Would they be provided for? Life Insurance is the solution and we can help. Compare Multiple Quotes from Highly Ranked Carriers and Save up to 70%! Getting your quote is easy and FREE. Click Here To Get Started

To be fair there are those people who never seem to become ill during a very long lifetime. My hat is tipped to these fortunate ones. Because of the illnesses and, in some cases, the discomfort or even pain that goes along with these illnesses these unfortunate ones are no longer able to work and may as a result become short of cash. They put up their life insurance policy for sale just to get their hands on some money...

There are ready buyers always looking for such a deal. Some people are under the mistaken impression that life insurance policies are bought only from people stricken with the aids virus. The fact is that anyone who is terminally ill, or whose health is deteriorating, can put up his or her life insurance policy for sale.

Here is how it is done:

Investors, sometimes through brokers, buy life insurance policies. There are usually some sort of qualifications. Of course, you must fall in one of the categories mentioned above, you must have an in force life insurance policy with a reputable life insurance company the policy must be incontestable. It does not matter whether the policy is a term policy or a whole life policy to put up your life insurance policy for sale. If the policy is a whole life policy check on the amount of cash or loan value before you complete the transaction...

The cash value of some policies, if you own it long enough, may be sufficient to meet your needs for immediate cash. In some cases it is not much lower than the face amount of the policy. In such a case you can take out most of the cash in the form of a loan, and still maintain your life insurance coverage. You would therefore have no need to put up your life insurance policy for sale.

When you are ready, if you still have a need to do so, put up your life insurance policy for sale but try to get the best deal. It is best to work through a broker as they tend to get you a better deal. Investors usually pay about 60% of the face amount of the policy...

Don't pay too much for life insurance! Shop and compare Quality Quotes from Quality Carriers first.
Just answer a few quick questions then get your Quotes. The process is Easy and FREE. Click Here For Free Quotes

Make Your Life Easier With No Exam Life Insurance

Home

No exam life insurance can make simple what could otherwise be a tedious exercise. You know you need to buy additional life insurance so you finally decide to take action. You decide on the plan you want and the amount. It would be nice just to answer some questions and get a no exam life insurance policy issued but you are politely told you have to do a medical examination.

Don't pay too much for life insurance! Check out Quality Term Life Insurance Quotes from A Quality Carrier first - Rated A+ by the A.M. Best Company, Instant Approval, if you qualify. Get A Free Quote!

The underwriters in the life insurance company are within their rights to request the medical examination because they want to know that they are not insuring someone who is going to die on them the day after they issue the policy. Although most insurance companies issue impaired risk policies they do look for the people who are in good health. There are certain age limits which would qualify a person for no exam life insurance. Insurance companies like most of all to insure young healthy people who are financially stable. In other words they have a job. Middle aged people who are in fairly good health are another favorite group. As you get older it becomes more difficult to get a preferred life insurance policy issued.

For many years insurance companies have been issuing no exam life insurance policies. The amounts they issue varies from $5,000 or $10,000 to as much as $500,000 in some cases. If you are in the preferred groups mentioned above you may qualify for a life insurance policy without having to do a medical examination.

In lieu of a doctor poking you every which way all you need to do is answer a few questions truthfully and you will be able to obtain a policy. Life is so much easier now that some life insurance companies even allow you to give them the required information online. Some of them go as far as to allow you to print out your policy right there on your own printer. Awesome, isn't it?

Here are some of the questions you will be asked for your no exam life insurance policy.

• They will need your name, address, date and place of birth, and of course who you want to be your beneficiary.

• The insurance company will run through medical questions regarding your present health and your medical history. They may even want to know a little about your family's medical history as some medical conditions are hereditary.
• If anything in your answers indicate that they should need additional information either from you or your attending physician they will request it.
• The insurance company may also request an inspection report.

Sounds simple doesn't it? Well it really is.

Click here and get your no exam life insurance quote:

Is there anything more important than your family's security? What would happen to your family if you died? Would they be provided for? Low Cost Term Life Insurance, No Medical Exam, just a few health questions - No Agent Visit. Get Coverage in Minutes!

Save Time - Apply For No Physical Term Life Insurance

Home

No Physical Term Life Insurance is offered to applicants between age 18 and age 65 if qualified. You may jump at the idea simply because you have no time to go and have a thorough medical done and you are aware that you need additional life insurance.

There is nothing more important than your family's security. What would happen to your family if you died? Would they be provided for? Apply For Term Life Insurance - Quick Approval, if you qualify. Carrier Rated A+ by the A.M. Best Company. Act Now!

• How To Qualify

  Every life insurance company sets standards that must be met in order to qualify for a life insurance policy whether it is a no physical life insurance policy or a policy for which you need a medical. In recent years life insurance companies have extended the requirements which would qualify the applicant for a life insurance policy.

  All that is required is that you answer a few questions about your medical history, your occupation and any avocation in which you may participate. It may seem that the life insurance company is issuing a policy based on your word. This is true for the people who answer the questions accurately. There are those who may think that they can exclude pertinent medical information and have a policy issued. This is not likely to happen.

  The life insurance company investigates each case. Usually they can get all the information they need from the Medical Information Bureau, fondly referred to as the MIB. This organization gathers information on people, with their permission, which is used in the future to help insurance companies decide on the types of risk that they should take on. The MIB is used whether you apply for a no physical term life insurance policy or one that is large enough to require a physical.

  The key, therefore, to qualifying for a no physical term life insurance policy is the truthfulness of the applicant. There are some cases that may be borderline but the underwriters will lean in your favor if you are truthful. If you attempt to pull the wool over their eyes they will decline the policy without hesitation. Also, keep in mind that every policy has a contestable period. This is usually about 2 years. If, within the 2 year period, the life insurance company discovers something that would cause them to have declined the policy initially they may withdraw it.

• Types Of Policies And Amounts Issued

  If you are between age 18 and age 65 and in good health you are likely to qualify for a no physical term life insurance policy. The companies that do this type of business will issue up to $500,000 of life insurance. Some companies go as high as $1,000,000 for younger applicants. The types of policies issued are usually the 10 year term, the 15 year term, the 20 year term and the 30 year term life insurance policies.

Want to Protect Your Family with Term Life Insurance? Take a Free look at Top Quality Life Insurance Quotes from a Highly Rated Carrier and Save. No Medical Examination required, just a few health questions. Simple Term Insurance

The Best Term Life Insurance Policy - Get The Best Term Life Coverage

Home

Finding the best term life insurance policy can be a very tedious exercise. What really is the best? It is important to make a decision as to why this life insurance is needed in the first place. We then need to figure how much is needed and where we should buy this policy. To put it another way we need to decide from which company we should buy the best term life insurance policies for ourselves and our families...

Shop and compare Insurance Rates from 100's of the Top Carriers. Get the Best Life Insurance Quotes possible. Save up to 70%. Click Here For Free Quotes

The fortunate thing is that the companies that I do business with have done all the sifting and research and as a result we don't need to look at many companies in this exercise. There are about 2000 life insurance companies on the face of this earth. Can you imagine checking out every one to find the best term life policy? Fortunately you don't need to so let us take some time and look at some of the most popular term insurance policies.

The 20 Year term Policy

The 20 year term policy has almost become a household word every time someone thinks about buying life insurance. This is certainly one of the best term life insurance policies available. This is because the policy makes so much common sense. Here is what I mean. Whenever someone thinks about buying life insurance for the fist time it is usually at a time when there is some change in their lives.

• People think about buying life insurance and finding the best term life insurance policy when they get married or sometimes just before this blessed event...
• People also think about buying their first life insurance policy when a new baby is about to enter this world. They want the best term life insurance policy for that event...
• People think about buying life insurance for the first time sometimes when they are going into business for themselves; and even more so when they see the tremendous possibility for high income from that business.

If you give this some thought you will see that the need for life insurance is long term in each situation. 20 years is a reasonable period to plan ahead for thus the popularity of the 20 year term policy. This certainly would be considered the best life insurance policy for many but there are other options.

The 30 Year Term Policy

The 30 year term policy is sought after by people who really want to plan far ahead. They are in the life insurance buying mood now and they just want to do whatever is necessary and get it over with. These people don't want to revisit the subject because a policy is about to expire. The best term policy for such people would be the 30 year term life insurance policy...

• The husband or wife who wants to be assured that their partner will not have any financial difficulties when raising their children even through college will love this policy...
• The businessman who wants to be certain that in the event of a key employees death they can continue the business until a replacement is found will consider this the best term life insurance policy...
• The businessman who has a floating debt with the bank needs a life insurance policy to cover that debt balance. They will love the 30 year term policy...
• The partner or shareholder of a corporation will love this policy which they would use to buy out the shares of a deceased partner or stockholder from their heirs. This would be binding as per a previously drawn up buy-sell agreement.

In each of these scenarios the 30 year term policy may be considered the best policy they could buy but there are still other options. You could buy the decreasing term life insurance policy to cover a mortgage balance owed. You could use a 5 year level term policy or a 10 year level term policy for short term obligations that you do not want to leave for others to take care of.

As You can see the best term life insurance policy may vary in type from person to person and from situation to situation. The ball is in your court...you decide what is the best for yourself and your family.

Don't pay too much for life insurance! Shop and compare Quality Quotes from Quality Carriers first. Just answer a few quick questions then get your Quotes. The process is Easy and FREE. Click Here For Free Quotes

Instant Insurance Quotes - Life Insurance Quotes You Need Right Now

Home

We all want instant insurance quotes. It used to be that when you wanted to buy life insurance you would call up an agent you knew or one that was well known by a friend or associate and you would invite that agent to make recommendations regarding type of policy and how much you should buy. In most cases people didn't even think about life insurance until they were approached by an agent. Things are changed quite a bit. It is not that people today love their families more, it is simply that getting instant insurance quotes is a much easier matter than it used to be...

There is nothing more important than your family's security. What would happen to your family if you died? Would they be provided for? Compare Quality Quotes and Save up to 70%! The process is Fast, Easy and FREE. Click Here To Learn More

If you watch television the idea of getting an instant insurance quote and buying life insurance online is in your faces constantly. There are well prepared experts on money matters discussing stocks, bonds, money market funds, mutual funds , annuities and life insurance on television on a regular basis. These things are discussed on the Christian stations as well. I recently heard a well known Pastor recommend that people should get instant life insurance quotes online and that they could even purchase the policy online.

We have got into the habit of experiencing instant gratification. We want everything now and, as it pertains to life insurance, we get it.

Some of the larger and finer life insurance companies had said, in the past, they would never sell life insurance online. They are, one after the other, falling in line today to do just that. Whatever the consumer wants in the United States the consumer gets. In most cases this is a good thing. In some cases, however, people shortchange themselves. They don't get the expert counseling of a highly qualified agent ...

Some online insurance companies will give you an instant insurance quote online then at your request send you an agent. You get the best of both worlds in this case as you know before hand the type of insurance you want to buy and you have a fair idea of the cost.

All this instant life insurance business started out with a kind of revolution in the life insurance business. People began to favor term insurance more than whole life because it is cheaper. It is quite a simple matter to quote term life insurance premiums for any age online. You can do the same with whole life but there are other considerations that are not that easy to illustrate. The consumer is smart though as they are buying more often from the better known and larger companies.

So go get your instant insurance quotes online...that is a good way to buy your life insurance.

Don't pay too much for life insurance! Shop and compare Quality Quotes from Quality Carriers first.
Just answer a few quick questions then get your Quotes. The process is Easy and FREE. Click Here For Free Quotes

Life Insurance - Knowing You Are About To Die Without Enough Is What Really Hurts

Home Articles

Should life insurance buying be seen as an urgent matter? There is something about some people that at times may cause them to procrastinate about matters that could end up being quite costly to the individual himself and in some cases the very ones he loves quite deeply. It just seems to such an individual that waiting until tomorrow is just fine. In my many years in the insurance industry I have seen situations where the purchase of a policy was very timely and I have also seen a few incidents when waiting was very costly.

What will happen to your family when you die? Will they be provided for? Life Insurance is the solution and we can help. Compare Multiple Quotes from Highly Ranked Carriers and Save up to 70%! Getting your quote is easy and FREE. Click Here And Save

Sometimes people who hurry to buy their policies do so because they fear the financial disaster, to their loved ones, that may come about because they were under insured. That is not the worse thing that can happen. In my opinion, the worse situation is knowing you are going to die without sufficient life coverage...

You lay in your sick bed, whether in a hospital or at home, knowing that in a short period of time you are going to die. You know your sweet daughter whom you adore so much will not be able to continue going to the same school. You know that you talented and energetic son will have to find another team on which to play baseball...

Above all, you are very aware that the beautiful woman that you promised to love and care for until her death, will have quite a difficult time raising the children. If only!

I have heard that statement so often...if only. If only I had bought that term life insurance policy that would have guaranteed my loved ones sufficient income to carry on after my death...at least until my youngest is age 18. If only I had bought that policy that would have paid off that mortgage upon my death. The cost was so minimal...why didn't I buy it?

You console yourself saying; "the children will not starve as my wife has a good job. They may have to get a smaller home in another neighborhood as her income is not sufficient to maintain this mortgage payment but they will be make do. My wife is very intelligent and will likely get a better job or a promotion in the company in which she is now employed". Would it not be better to know for certain?

All these things are possible but, as you lay on your dying bed, would you not feel more at peace if you were more prepared? When that life insurance agent came around you made it your duty to show him that he cannot sell you anything. When you think about it you realize the salesman was not in any way offensive. He was just trying to help.

Life insurance, whether term or permanent, can be seen as a lifeboat that is there when when the flood comes. Try not to say "if only". Buy your policy online if you prefer not to deal with an agent.

There is nothing more important than your family's security. What would happen to your family if you died? Would they be provided for? Compare Quality Quotes and Save up to 70%! The process is Fast, Easy and FREE. Click Here To Learn More