Life Insurance Premium Payments?

What are life insurance premium payments?

Premiums are the price you pay to the insurance company in return for the life insurance coverage provided by the insurer.

Usually, you may choose one of several payment options or modes of payment: Monthly, Quarterly, Semi-Annual, or Annual payments.

Make sure you pay your premiums on time so you don’t let your life insurance policy coverage lapse, which would put your insurance in jeopardy of no longer being In Force.

You can set up automatic premium payments from your bank account to go directly to the insurance company so you don’t miss any premium payments.

Term Life Insurance Definition

What is the definition of term life insurance?

Term life insurance is temporary life insurance that provides coverage lasting for a specified number of years.

Usually, term life offers life insurance for up to thirty years.

However, you may be able to choose a Policy Term (duration of coverage) lasting for a period of 10, 15, 20, 25 or 30 years, depending on your age, health, and insurance needs.

If the insured dies during the policy term, the death benefit is paid out to the beneficiary of the policy.

If the insured person outlives the duration of the term life insurance policy, there is no pay out of death benefits.

Term life is usually the cheapest type of life insurance you can buy.

Life Insurance Waiting Period

A waiting period for life insurance can be one of two things:

1. The period of time before your life insurance coverage begins.

2. The period of time before you have 100% full death benefit protection.

Usually, a life insurance policy begins coverage once you have applied for your policy, been approved by the insurer, and paid your first premium payment.

However, you may or may not have full death benefit coverage from day one of your life insurance policy being In Force.

Traditional life insurance plans provide full coverage from day one.

However, guaranteed issue graded death benefit life insurance plans usually do not provide full death benefit coverage until you have been insured for at least two years

Learn more about a waiting period for life insurance.

When to Choose Term or Permanent Life Insurance?

If you are considering the purchase of life insurance, you may want to learn about when it’s a good time to buy term life insurance, and when it may be better to buy permanent life insurance protection.

Since term life insurance is temporary, lasting for up to 30 years, you’ll want to consider term life for your temporary protection needs; such as, if you have a need for life insurance that will last 30 years or less – A home mortgage, car loan, growing children, etc.

However, it you need life insurance guaranteed to last your entire lifetime, beyond thirty years, then a permanent life insurance policy can help you accomplish your goals.

Learn more about when to choose term life insurance or permanent life insurance.

How are Life Insurance Death Benefits Paid Out?

If you own a life insurance policy, you may be wondering how your death benefits will be paid out to the beneficiary of your policy.

Actually, your beneficiary may have a choice of a few different options to choose from in receiving the pay out from your life insurance plan.

The most common pay out options for death benefits may include the following:

1. Lump Sum payout.

2. Checks to be written off of an account.

3. Annuity payments for a set period of time.

The beneficiary has the option of choosing how he or she may wish to receive the death benefit payout from your life insurance upon your death.

Learn more about how life insurance death benefits are paid out.

What If You Don’t Die During Term Life Insurance?

If you are insured by a term life insurance policy, and you don’t die during the Policy Term, then the following happens:

There is no payout of any death benefits, since are are still alive.

The life insurance coverage ends, and you pay no more premiums.

You may have the option of renewing your term life insurance policy for another term, usually up to 5 or 10 years, at a new rate based on your age at the time of renewal.

However, you will need to contact the insurer before expiration of your original policy, there may be a date in the policy by which time you are required to notify the insurer of your intent to renew your coverage.

Learn more about what happens if you don’t die during your term life insurance.

Final Expense Insurance with No Medical Questions

Can I buy a final expense insurance policy with no medical questions asked?

Yes, if you qualify for coverage you may purchase a no medical question final expense policy.

These plans are guaranteed issue, which means there is no health exam or health questions asked.

However, guaranteed issue policies are usually available for people over 45 years of age.

You need to meet the age requirement for guaranteed acceptance on your policy.

One insurer offers guaranteed approval final expense life insurance for people ages 45 to 85 years old.

Here’s how to get final expense insurance with no medical questions asked.

What is a Term Insurance Policy?

A term insurance policy is a type of life insurance plan that provides protection for a specific period of time. 

It is also known as temporary coverage, because you may outlive the duration of your term life policy.

Usually, you may choose a policy term of 10, 15, 20, 25 or 30 years to meet your specific life insurance needs.

If you pass away while your life insurance coverage is In Force, the death benefit is paid out to your beneficiary.

If you outlive the duration of your coverage, there is no payout of any benefits, and the life insurance expires.

Level Term life insurance usually offers the most affordable life insurance protection for a period of 30 years or less.