Life Insurance – Businesses that deal with death and loss

 

 

 

 

Life insurance is a numbers business of mortality (death) risk and can be used to cover a mortgage.  Life insurance is underwritten based on medical and financial criteria.

 

 

Questions to ask the Life Insurance person

  • How long does it take for a life insurance payment to be paid out?
  • What is Whole Life Insurance?
  • What types of Term Life Insurance are there (several)?
  • What does a rated policy mean?
  • What are the benefits now and in the future for having a “Child Rider” added to a life insurance policy?
  • What does “convertible” mean?
  • What does “contingent” beneficiary mean?
  • Is the policy underwritten; that is, if the medical checks done when the life insurance      policy is issued?

Renewable

  • Means the life insurance will renew automatically without proof of insurability.  An example of this is when a ten year term policy renews it will continue for another ten years at a new guaranteed increased rate.

Revocable beneficiary

  • Means the owner of the policy      controls any changes made concerning beneficiary designations.
  • The beneficiary designation      bypasses the estate.

 Irrevocable beneficiary

  • Means that the owner of the      policy has to get the permission of the designated beneficiary to make any      beneficiary designation changes.

 Be Aware

Applications are tracked by an agency called the Medical Information Bureau (MIB). http://www.mib.com/html/consumer_guide.html.  Suspicion may be raised as to why you are doing this and future policies may be denied.

  • An application for life insurance can be denied if you fail to disclose information when asked “what other life insurance policies do you have or have you applied for?” This is NON DISCLOSURE!
  • There is a “suicide” clause in all life insurance policies that will prevent a life insurance payout if an insured died by suicide within the stated first two years of a policy being issued.
  • Money received from a life insurance policy is TAX FREE.
  • Insurance funds in Canada are insured by ASSURIS.  Assuris is a not for profit organization that protects Canadian policy holders if their life insurance company should fail.       http://www.assuris.ca

 

 

MAKE SURE OTHER PEOPLE KNOW YOU HAVE A LIFE INSURANCE POLICY

AND IDEALLY, WHERE IT CAN BE FOUND!