Life Insurance Policy Death Benefit?

What is a life insurance policy death benefit?

The death benefit of a life insurance policy is the amount of money your beneficiaries will receive from your policy upon your death. This is paid out by the insurance company if the coverage was “In Force” at the time of your death.

Your beneficiary makes a claim for death benefits by contacting your insurance carrier after your death. The insurer will advise the beneficiary of the procedures for completing the claim on your life insurance benefit.

Learn more about a life insurance policy death benefit and how it works.

Can The Beneficiary of a Life insurance Policy Claim the Money?

Yes, the beneficiary of a life insurance policy can claim the money from the death benefit of a life insurance policy.

In fact, only the beneficiary may make claim for a death benefit, if the beneficiary is alive to make a claim.

In order to claim the money as beneficiary you must be named as a beneficiary in the life insurance policy, and the insured person must have died while the coverage was In Force and the premiums paid up to date.

Learn more about Can the beneficiary of a life insurance policy claim the money?

Graded Death Benefit Life Insurance Policy

What is graded benefits life insurance and how does it work?

It’s a type of life insurance plan that guarantees your approval for coverage even if you have health issues.

In return for insuring you, there are limited death benefits payable the first 2 (or 3) years you are insured.

However, if the insured person dies after the graded death benefit period, 100% of the death benefit is paid out to the beneficiary of the life insurance policy.

Learn more about graded death benefit life insurance policies and how they work.

Life Insurance Policy Owner

What is a life insurance policy-owner?

The owner of a life insurance policy is the person or entity that pays the premiums on the life insurance policy and has the rights of ownership.

The owner of a policy is responsible for paying premiums, managing the insurance policy, choosing the beneficiaries, and handling the oversight of ownership.

The owner may or may not be the insured.

Learn more about being the owner of a life insurance policy.

 

Life Insurance with No Health Check

Can I get a life insurance policy without any health checks required?

Yes, there are no health check life insurance plans available.

There are two types of life insurance plans without any health checks needed:

Term Life and Whole Life.

With term life insurance policies you may purchase up to $1,000,000 or more of coverage without having to take any exams.

However, you need to be in good health, and between the ages of 20 to 60.

With whole life insurance you can get no health check life insurance policies without any health questions asked, but the amount of life insurance coverage available may be limited to around $25,000.

These plans may offer guaranteed approval regardless of your health, as long as you meet the age requirements; for example, ages 45 to 85.

Learn more about how to get a life insurance policy with no health check.

Can You Buy More Than One Term Life Insurance Policy?

Yes, life insurance carriers will allow you to own more than one term life insurance policy if you can show you have a need for the increased amount of coverage.

Over time your need for life insurance may grow, and life insurers understand that one life insurance policy may not provide for all of the financial security needs for your family.

Since term insurance offers coverage for 10, 15, 20 or 30 years, owning more than one policy can provide you with the protection you need for various lengths of time throughout your life.

For more information, read this article: “Can You Buy More Than One Term Life Insurance Policy?”

 

Life Insurance Policy Questions to Ask

What are some important questions to ask before buying a new life insurance policy?

When it comes to purchasing life insurance you may want to consider asking the following questions about your new policy:

• How much life insurance coverage does it provide?
• How long will my life insurance coverage last?
• Will my rate ever increase, if so, when and by how much?
• Can the insurer cancel my life insurance if my health changes?
• Are there any exclusions to the coverage provided by my life insurance policy?
• Can I add life insurance coverage for my spouse (and children)?
• What is the cheapest premium payment option?
• How can I change beneficiaries to my life insurance policy?
• Can I have premium payments automatically sent direct from my checking account?
• Can I renew my life insurance policy?

Here are some life insurance faqs to help you learn more about life insurance coverage.

When Would Life Insurance Not Pay Out?

A Life insurance policy would not pay out a death benefit claim if the policy lapsed and there was no extended term benefit on the life insurance policy.

Also, if a policy is terminated for non-payment of premiums or you simply cancel your life insurance coverage, a death benefit is not paid out.

If you commit fraud, a felony or another similar act,  the life insurance company will certainly contest the claim.

In addition, suicide is not paid out as a claim if the insured person commits suicide within 2 years of starting the life insurance policy. However, the suicide exclusion is only 1 year in some states.

Can A Life Insurance Policy Be Cancelled?

A life insurance policy is a unilateral contract.

You can cancel your life insurance policy at anytime for any reason.

The life insurance company is obligated and cannot cancel the contract. The exceptions are for misrepresentation by you during the first two years you are insured under the life insurance policy, or in the event of fraud.

Before you cancel your life insurance, you should explore alternatives with you insurance agent or broker. There may be alternatives such as a life insurance policy change available. In addition, there may be tax consequences if there is a policy gain, which may occur on some permanent life insurance policies.

 

What Is The Smallest Life Insurance Policy You Can Get?

The smallest amount of life insurance that may be available is around $7,500. This will depend on your age and health.

Most life insurance companies offer a minimum of $50,000 of life insurance because of the minimum premium they need to charge in order to pay for claims and the cost of underwriting the risk.

However, some life insurance companies specialize in insuring older people or higher risk people, and provide a smaller amount of life insurance protection which costs more due to the risk presented by the person being insured by the life insurance policy.

For instance, Globe Life Insurance offers people age 78 and under from $10,000 up to $50,000 of simplified life insurance coverage with no health exam required. You can get an instant life insurance quote and apply online for your life insurance policy in about five minutes.