Category Archives: Life Insurance
Servicemembers Group Life Insurance: What It Is, Who Is Eligible, and Why Claims Most Often Get Denied
The people who put their lives on the line to defend our nation and our freedoms deserve to be venerated for their dedication and sacrifices. Active-duty servicemembers and veterans are awarded a variety of benefits for their service, and with good cause. Unfortunately, utilization of these benefits does not always play out smoothly. Families of covered servicemembers are entitled to life insurance benefits when the insured party passes away, but in many cases claims are delayed for weeks or months if not flat-out denied.
What Can Beneficiaries Do if the Life Insurance Policy Lapses?
Life insurance policies are only valuable so long as the insured continues to keep up with premium payments, which might be set up to be paid monthly, semi-annually or annually. If those payments stop, the policy is said to lapse. Once the policy lapses, it is no longer in force, and no benefits will be paid when the (formerly) insured passes on. A lapsed whole-life policy might have built up some cash value and be worth something as part of the deceased’s estate, but a lapsed term life policy is not worth anything at all.
What’s the Difference Between Social Security Disability Insurance and Long-Term Disability Insurance?
People who experience some sort of physical or mental disability that keeps them from working, such as due to an accident or illness, might be able to get financial help from various insurance-based resources. If the accident or illness occurred on the job, the person is likely covered by workers’ compensation, which is a form of insurance that pays medical expenses and partial wage replacement benefits for short-term, long-term or even permanent disability. If the disability was not acquired in the course of employment, other forms of insurance can pay benefits to people who can no longer work.
Cash Value and Dividends Can Help Keep Your Life Insurance Policy From Lapsing
One advantage of whole life insurance policies over term life is that they build cash value. A term policy does no such thing. It is in effect so long as you continue to pay your premiums, and if you die while covered, the policy should pay out to your beneficiaries. But if you stop paying premiums and let your term life policy lapse, the policy is canceled and you have nothing to show for all those years of premiums you paid.
Group Life Insurance Only Pays on Those Who Were “Actively Working” at Time of Death
Employer life insurance, also known as group life insurance, is a common fringe benefit provided to employees at many companies. Employees qualify for coverage simply by virtue of their employment and don’t have to take a physical exam or go through any underwriting.
Are Deferred Annuities for Real?
According to the financial information website Investopedia, a deferred annuity is a contract with an insurance company that promises to pay the owner a regular income, or a lump sum, at some future date. An immediate annuity, in contrast, is an insurance contract that starts paying as soon as you purchase it. Deferred annuities are often aggressively marketed to consumers, especially elderly consumers, but some would say they have become the scourge of the unwary investor in recent years.
What Should You Look for During Your Free Look Period?
There is still no free lunch, but state laws guarantee you a free look when you buy life insurance. It’s not exactly try-it-before-you-buy-it; first you buy it, then you try it. But if you don’t like what you see during your free look period, you can cancel your policy and get back any money paid, and it’s like you never had a policy in the first place. No harm, no foul. Sound good? Let’s explore more.
What Happens if My Life Insurance Company Goes out of Business?
Companies get bought and sold all the time, and insurance companies are no different. When any business is acquired through a merger or acquisition, the assets (and liabilities) of the acquired company go along for the ride and become assets of the new company. In the case of an insurance company, this means your insurance policy will be assigned to or acquired by the new company and stay in full force and effect, so long as you continue to render your premiums to the new company.
Life Insurance Riders: What You Need to Know
First things first: what is a rider? You start with your basic insurance policy, which for most people will meet all their needs and cover them just fine. But some people have special requests and want to customize the standard policy to meet their specific needs. A rider is an additional insurance policy provision that is attached to your main policy and rides along with it. Riders are sometimes called endorsements as well. Endorsements generally refer to a designation on the main document, such as an additional letter on a driver’s license that allows you to operate a motorcycle or different types of commercial vehicles on a…
Waiting Periods: What Are They?
Getting life insurance is a smart move; you’ll feel better once you’ve done it, knowing your loved ones will be financially protected and cared for if you pass. Life insurance can pay for a funeral and burial and other end-of-life expenses, it can pay off the mortgage on a house, and it can make up for the loss of income. Having an insurance policy that covers these expenses gives your family members one less thing to worry about during a difficult time.
