The main types of life insurance available are term and permanent.Term insurance provides protection for a specified period of time. Additional Points If you miss a premium payment, you typically have a 30- or 31-day grace period during which you can pay the premium. You may be able to reinstate with evidence of insurability depending on your policy’s provisions.If your child dies before you, do you want the proceeds to go to that child’s children? Think twice before you do, because in many situations it may not be to your advantage.
Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb used: five to seven times annual gross income.
If you want to be more precise, take the time and complete the Needs Analyzer Choosing A Plan Buying life insurance is not like any other purchase you will make.
Always name a “contingent,” or secondary, beneficiary, just in case you outlive your first beneficiary.
Select a specific beneficiary, rather than having the proceeds of your life insurance paid to your estate.
There are a number of factors to consider when determining how much protection you should have.
These include: any immediate needs at the time of death, such as final illness expenses, burial costs and estate taxes.It allows policyholders to receive all or part of the policy’s proceeds prior to death under certain circumstances, including the need for long-term care and confinement to a nursing home.Because payments may affect tax status and Medicare eligibility, and will be deducted from the overall benefits paid later to beneficiaries, policyholders should thoroughly investigate options in advance Medical tests can provide accurate and current information about an applicant’s health, thus enabling insurers to charge premiums that reflect the level of risk an applicant represents.Because some health conditions are easily managed through proper medication, therapy or lifestyle changes, medical information sometimes makes it possible for insurers to cover applicants who might not otherwise be insurable.More serious or incurable conditions present an enormous risk that an insurer simply cannot assume.This rider, if available, may require additional premium.