What Is Key Person Life Insurance?

A Key person life insurance policy covers employees who provide a large contribution to the income that a company generates, for example, top salesmen, designers, engineers, and top managers, or other key employees.

This type of worker can be very hard to replace, and the time it takes to replace a key employee can result in financial losses to the company.

That’s why key person life insurance can help alleviate those potential losses and give the company some money to help them recruit a replacement to take the place of the key employee who is no longer with the company.

Learn more about key person life insurance coverage.

 

Can I Get Life Insurance For My Mom?

Yes, you may purchase a life insurance policy on your mother.

In order to get life insurance on your mom you may need her permission, signature on the application for life insurance, and she may need to answer some health questions.

The life insurance company requires “Insurable Interest” in the person you want to insure for life insurance. Children have an insurable interest in their parents since they may rely on the parents for financial support, or may suffer financial loss upon the passing on a parent.

As long as the child is an adult, he or she may be able to purchase life insurance on a parent. Many adult children buy life insurance on their parents to provide funds to help pay for final expenses; such as, the cost of a funeral and burial expenses.

Here’s how to buy life insurance for your mom.

 

Can You Stop Term Life Insurance?

Yes, you can stop your term life insurance policy.

Stopping term life insurance does not have any penalties or costs associated with the termination of your policy.

If you want to start the term life policy again, however, you would need to re-apply for coverage, which means re-qualifying at the rates for your older age at the time you apply again.

If you have started any new medication, if your parent has suffered a heart attack, or if you have gained weight, or started smoking, or been diagnosed with diabetes or high cholesterol, those things will enter into your new rate, and usually increase the rate you pay for your new life insurance policy. So you might want to look into ways to keep your existing term life insurance policy, such as reducing the face amount of coverage, before making the decision to end your coverage.

You can usually stop term life insurance in one of two ways.  First, you could just stop paying the premiums for your life insurance.  The policy will go into it’s grace period then lapsing after that, about 30 days.  The second way to stop your life insurance is to write a letter to the life insurance company notifying them of your intentions to end your coverage and the effective date you choose to end your policy.

Please keep in mind you will most likely pay higher premiums when you go to apply for more life insurance in the future.  Also, insurability could be an issue if your have developed a health issue at the time of your new life insurance application.

How Much Life Insurance Is Adequate?

The amount of life insurance protection that is adequate will vary by person based on your own personal situation and goals for your life insurance plan.

A lot of variables go into the calculation of determining how much life insurance you really need, how long you need life insurance protection, and what is an appropriate amount of coverage for you to purchase.

A life insurance needs calculator can help with determining the amount of life insurance that’s right for you.  A few things to get you started when calculating out how much life insurance you need and how long you need it for are:

1) Do you have a mortgage?  If so, how much is left on the outstanding mortgage loan and how many more years do you have to go until it’s completely paid off?

2) Any final expenses you want paid off (e.g. burial expenses, credit card debt, medical bills)?

3) Education expenses for you or a family member you want to pay off (such as college tuition)?

4) Income replacement – A question to think about here is how much income would be needed if you died today and how long would your family need it to maintain their current lifestyle?

Who Can Be Covered By Life Insurance?

Usually, a life insurance company will provide life insurance for a living person.

The person applying for the life insurance policy must have an “insurable interest” at the time the life insurance policy is issued.  That means you cannot buy life insurance as a way to gamble.  You either rely on the person for financial support, or you would lose out financially if the person were to die.

For the insurance company to offer a life insurance policy there are underwriting criteria which must be met involving the insured’s health, family heath history, occupation, hobbies, lifestyle, and additional personal risk factors.

Learn who you can insure for life insurance.

What Happens When I Cancel Life Insurance?

When you cancel your Life Insurance policy, your life insurance coverage ends.

You are not only giving up your life insurance coverage you purchased but you may also be giving up your insurability and the guaranteed cost of your life insurance.

When you’re cancelling a term life insurance policy, that’s the end of it, there is no more coverage and you get no money back from your policy.  They do not have any cash value.  However, a life insurance carrier may return a pro-rated portion of the last premium payment you made if you canceled it before the life insurance policy lapses, but that will vary by carrier.  Most people will just not pay the premium when it is due and allow the life insurance policy to lapse on its own.

If you’re terminating a permanent life insurance policy, there may be some cash value inside the policy to be collected. The cash value of a permanent life insurance policy is subject to surrender charges, which depends upon the structure of the policy and how long your life insurance policy has been in force.

What Does A 20 Year Term Life Insurance Policy Mean?

Usually, a 20 year term life insurance policy applies to the period of time where the premium is level (the same) in cost each year for 20 years.

Most term life insurance policies are designed to run longer than their level term period but at a higher price that increases every year after the level premium period ends.

So a 20 year term life insurance policy would most likely charge a flat level premium for each of the first 20 years you are insured, then an increasing premium each year there after if the insured wants to continue the life insurance policy.

Here’s how you can learn more about 20 year term life insurance plans.

Does a Renewable and Convertible Term Life Insurance Policy Have Cash Value?

No, a renewable and convertible term life insurance policy does not have cash value.

However, once you convert your term life insurance policy into a permanent life insurance policy, that new permanent insurance may build up some cash value inside the life insurance policy over time.

Learn more about renewable term life insurance.

Where Can I Buy Life Insurance?

There are several places you may be able to purchase life insurance.

Whether or not you qualify may deed on your age, health, and the requirements of the life insurance company.

You can choose from local life insurance agents to assist you in finding the right life insurance coverage to purchase, contact a life insurance company direct, or go to a life insurance website that allows consumers to handle the entire life insurance buying process on the internet.

When buying life insurance make sure you:

1. Consider What type of life insurance is right for you: Term or Permanent?

2. Determine How much life insurance you need?

3. Compare Rates among several leading life insurance companies.

4. Review the financial strength rating of the life insurance companies.

Here are some helpful tips on buying life insurance

Do Life Insurance Companies Test for Weed?

Yes, life insurance companies test for marijuana.

If you live in a state where marijuana is legal, and you have a prescription, if required, then you may qualify for life insurance.

In addition, many life insurance companies are starting to offer life insurance for people who smoke marijuana.

However, life insurance companies do test for marijuana, and other legal and illegal drugs in your system.

Learn more about life insurance drug tests and how they work, and find out how you may purchase life insurance online with no health exam and no drug tests.