50. What to do if my application was declined? Our opinions are our own. This is probably the most commonly asked question. Your premium will typically remain the same throughout the term. The amount of coverage you can buy must reflect your economic value. Additionally, the face value will diminish over time in direct proportion to your mortgage balance. Do you offer support during claims processing-: You should also ask your insurance broker how long it would take to process your claims if you ever had to file one and the level of support he would provide.The whole purpose of buying insurance in the first place is so that you can have easy access to claims whenever you need them and your insurance … This is why you need to do research on the broker you want to work with rather than looking for the best rate. You may want to supplement your current policy from work or add another term life insurance because you just had a new addition to the family. Whether you’re buying your very first policy or planning for the next chapter of your legacy, it’s common to have questions. 25. Sara Routhier, Managing Editor of Features and Outreach, has professional experience as an educator, SEO specialist, and content marketer. They pay for the medical nurse to perform the exam, agent’s commissions and doctor’s medical records among many other expenses before they see a dime. You obtain a policy to safeguard against financial catastrophe for your loved ones. You don’t need it. The problem is that you will spend two to three times as much in premiums, and if you outlive your term period, you will only get your money back without any additional interest, so your money just worked for free. 15. The premiums for policies with this feature tend to be higher, and you must be careful not to miss any payments throughout the term in order to take advantage of this feature. The worst thing you can do is to apply to eight different companies to see who can issue you a policy because the more you get declined, the easier it is for other companies to follow suit and not approve your policy. If you have extra questions that aren’t mentioned in this guide, please make sure to add them to the comments below this article, and I’ll be sure to follow up. Why Do I Want Life Insurance? You probably know that smokers pay two to four times as much as non-smokers do, but this trick wouldn’t work. However, here I will provide a sample from a simplified issue application because they are more strict so you’ll get a better idea of the array of health questions … Comparison shopping should be easy. However, if someone you love is dependent on you financially, you need life insurance. The questions on every life insurance application aren’t always the same from company to company. 3 Coverage can lapse or guaranteed death benefit can expire if no premiums are paid following initial premium, if subsequent premiums are insufficient, or if account value is reduced by withdrawal or loan. People who purchase decreasing term policies usually have financial obligations that decrease over time (such as mortgage payments or loans). Primary beneficiary: The first one in line to collect the death benefit upon the insured’s death. If you have a permanent policy, you can authorize the insurance company to draw your premium from your policy’s cash value. 42. Expect to answer questions about cold calling, meeting sales goals, your motivation and passion for the job, and your strengths and weaknesses. I filed for bankruptcy. How does the insurance company determine my premium? Most importantly, group coverage doesn’t offer sufficient protection and typically offers two or three times your yearly income, which by all accounts, isn’t enough. If you just had a bankruptcy, the insurer believes that you will not pay for the coverage you just acquired. Potential insurance buyers often refuse to purchase what an insurance agent is selling the first time around. That is why we took the time to answer the 100 most frequently asked insurance questions and post them here on the Albany Insurance Blog.. Am I still eligible for coverage if I have a serious health condition? Contingent beneficiary: Also known as a secondary beneficiary, is the second one in line to collect the benefit if the primary beneficiary is deceased. Term insurance plans cover you for a term of one or more years, and it pays a death benefit only if you die in that term. Sometimes, depending on your age and the company, a urine sample and EKG will also be required. How can I save money when buying life insurance? Additionally, policies such as final expense are approved on a simplified issue basis, and do not require you to take the exam. Do I need a medical exam to purchase life insurance? The local government will take over and bury you in a potter’s field or cremate your body. Looking into insurance could be confusing as you need them for so many areas of your life, such as for your automobile, business, and home to start. However, insurance companies are in the risk evaluation business, and they view applicants with a criminal history as high-risk individuals. What does it mean when a policy is “fully paid up?”. Tell Me What Is A Life Insurance? If you already have a policy, it will usually have a lower premium rate than a new policy you would buy. A child’s policy can provide a saving vehicle, the ability to buy more coverage in the future without proving insurability and also pay the death benefit in the event of a child’s death, which can be used for burial expenses. That said, there are a few cases for a permanent policy which can be best used for estate planning or when you buy a small final expense policy. The following are 25 questions you should ask, as you consider what company to do business with and what plan to buy. What was the reason you were denied coverage, accidental death and dismemberment (AD&D), whole life provides a lifetime’s protection, Life Insurance for Overweight Individuals, Life Insurance with a History of Drug Abuse, Brighthouse Financial Life Insurance Review, Fidelity Life Association Insurance Review, Government Personnel Life Insurance Review, Motorists Final Expense Life Insurance Review, Northwestern Mutual Life Insurance Review, Have or adopt a child (or became a grandparent), Have children or grandchildren who are about to enter college, Provide care or financial help to a child or elderly parent. 14. … More. Why don’t you just buy term life and invest the difference somewhere else, where you can have total control? Do they have assets you can use to pay for burial expenses. I get this question all the time, and I always respond with the same definitive “NO, you shouldn’t.” Since many people consider term life insurance as a total waste of money, insurance companies had to come up with an approach to lure you in. They increase their odds by conducting an exam and consequently decide how risky you are to insure. 10 Must Know Life Insurance Questions And Answers 1. This site is protected by reCAPTCHA, and the Google Privacy Policy and Terms of Service apply. However, even if you don’t die within the term, you have not wasted your money any more than when you buy car insurance but never have an accident. 3. Answer : Life insurance is an insurance coverage that … If you apply for a traditional policy, then yes, you will have to undertake the exam. During this time, if the insurance company finds that they issued the policy under misrepresentation or withholding of information by you, they can declare your policy void. Insurable interest is a reason to buy life insurance on someone else because you could undergo a financial disaster if they die. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. Go to erieinsurance.com for company licensure information. 30. Before you buy any kind of life insurance, think about why you're buying it. Which one is better: Term life insurance or permanent? Can I buy life insurance on anyone I choose? how to locate a lost life insurance policy, Whether you’re entering adulthood or nearing retirement, Learn more about life insurance options from Erie Family Life. I typically get this question when someone has already spoken to another agent or calculated rates online. What is the policy’s purpose? In other words, a general insurance policy helps you to protect you and your valuable items. Here is a post I wrote about life insurance sample rates which reveal costs based on age and gender. Should I Buy No-Questions-Asked Life Insurance? However, even if you are not in top health or have a serious health condition, there are still some options available with guaranteed issue plans, although this comes at the cost of a higher monthly premium and a lower death benefit. Additionally, since it’s impossible to determine one person’s mortality with absolute accuracy, the carriers group individuals with similar risk and calculate their rates. The cash value can be used in several different ways, including allowing you to take out a loan against the cash value, or paying your premium after your policy is fully paid up. Learn more and request a quote. Risk classification, also called health classification. 28. Not necessarily. If you make 20K per year and want to purchase a 20-million-dollar insurance where the premium is so high, you can’t afford it, this will trigger a red flag, and you most likely will not be approved for coverage. To determine how much life insurance you need, it’s best to look at your surviving family’s immediate, ongoing, and future financial obligations, and compare that with your financial resources. What if you pay for 20 years and we will give you your money back? When you buy life insurance, don’t try to estimate when you will die so that you can pay the least in premiums. Keeping all these factors in mind, it might be worth considering a new policy if you have any significant changes in your life circumstances, such as if you: “Fully paid up” means that you have paid enough premiums to cover the cost of the policy for the rest of your life, and the company will use the cash value to pay your premiums until you die. Mortgage protection insurance or MPI is a type of life insurance which pays your mortgage balance in the event of your death. Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time. Compare rates from 50+ top-rated insurers. as well as Board exams. Life insurance prices are fixed by law and are subject to the insurance carrier and the state’s department of insurance approval. If you only need burial insurance for them and you have the money to cover it, or they have enough assets to pay for it, skip the policy and call it a day. After all, nobody is perfect. If that were the case, brokers, agents, and the insurance companies couldn’t compete ethically in the marketplace, and consumers would be even more baffled with life insurance. Life-Insurance. Can I Get a Better Price If I Buy Directly from the Insurer? Key person life insurance is protection a business owner can purchase on key employees to cover premature death. Additionally, I need to know the requested face amount and policy type just as a starting point. The older you are, the higher the premiums, and the more risk you have of developing a health condition that could increase your premium even more or disqualify you from getting coverage at all. Below mentioned are the different forms of general insurance plans offered by most of the general insurance providers: Motor Insurance; Marine Insurance Reviewed by Immediate: funeral costs, medical bills, taxes. Considering all these obligations and resources, the difference between the two is how much life insurance you need. What is the “return of premium” feature? The more quotes you compare, the more chances to save. Learn more about life insurance options from Erie Family Life or talk to your local ERIE agent for a free quote. 5. I have seen, over the years, many individuals applying for a guaranteed issue life insurance when they could get a traditional coverage without the waiting period. Your Agent can help you determine if you need one. Are you... 2. Why Do Insurers Care About a Felony Conviction? Ans: Insurance plans that do not come under life insurance are known as ‘General Insurance’. Our life insurance industry partnerships don’t influence our content. It is human nature to avoid difficult tasks, but have you thought about what happens if you die unexpectedly? Are you taking care of them? Would you buy a cat in a bag without checking it first? The amount you take out early will be subtracted from the death benefit payment along with interest. Some policies have a provision that allows you to collect a significant portion of the death benefit while you are still alive should you become terminally ill. company licensure and states of operation information. Most policies have a contestability period of two years after you buy the policy. Firstly, there is a graded benefit clause which will not pay the full death benefit amount should you pass away during the first two policy years. 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