Before purchasing Life Insurance, it’s important to consider a few factors that may affect your rates. Generally, healthier individuals receive lower rates. Insurers may look for medical proof of pre-existing conditions or specific health metrics. The fact that men live shorter than women also affects their rates. Because of this, many life insurance companies charge men more for their coverage. While this may seem unfair, it’s important to consider your future needs and be realistic about how much coverage you need.
The beneficiary of a life insurance policy is the person who will receive the proceeds when the insured person dies. While the beneficiary is not a party to the policy, it can be changed if a new beneficiary is chosen. It is important to note that you can change the beneficiary of a life insurance policy at any time, but it is recommended that you always change it if your circumstances or family situation change. If you’re married and want your spouse’s death benefit to go to a new family member, you’ll want to change it if you have a new spouse.
You can also choose a policy that contains a cash value. These policies may have a limited death benefit and can be converted into another type of insurance or annuity. You can also choose an extended term policy, which allows the face amount of your policy to remain unchanged while the cash value pays the premiums at term rates. If you’re unhappy with your choice, the insurer may reinstate the policy after three years, but you’ll have to pay back the entire premium amount.
Purchasing life insurance is a sensible way to protect your family from any unforeseen expenses. Even minor children can experience financial hardship if a parent passes away prematurely. Life insurance can also protect your spouse and children from any untimely financial losses. If you’ve married or engaged, your loved one may need to borrow from you. And if you’ve purchased a joint mortgage, life insurance could help pay off the debt. It can also protect your children’s education and keep your home in good shape.
While most individuals need life insurance for themselves, others choose to purchase a policy for a spouse or parent. A spouse who is financially secure and has no children may not need life insurance. In addition to paying for their spouse’s funeral, children may also need a small amount to cover burial expenses. The cost of life insurance may not be a concern for them if they have a high level of savings and other investments. If you are not sure whether or not you need life insurance, consult with an experienced life insurance agent who can recommend the best companies for you.
If you’ve neglected to pay your premiums for a period of time, your policy may lapse. This ends your relationship with the insurance company and prevents beneficiaries from receiving death benefits. Luckily, most insurance companies will allow you to reinstate your policy after a lapse of up to three years. To reinstate your policy, you must pay all overdue premiums, plus interest, and repay any loans taken against your policy. You may also need to complete a new health questionnaire and undergo a medical exam.