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Insurance 101
Here's a quick look at some important information.
Beneficiary:
The person or persons who will receive the benefit payment of your life insurance policy.
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Final Expenses:
These can include funeral expenses, unpaid hospital bills, credit card balances or other debts, probate costs, or estate taxes. When you are evaluating your needs for life insurance, you should carefully consider your final expenses.
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Fully Underwritten:
Life insurance plans which require some medical screening as part of the application process are referred to as fully underwritten plans. The screening frequently includes a paramedic exam to determine height, weight and blood pressure. A blood and/or urine analysis, along with other tests may also be conducted.
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Premium:
The price you pay for your insurance coverage.
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Rider:
An optional feature or coverage which you can add to your insurance plan (usually with an additional premium). For example, some life insurance policies offer accidental death riders which provide an additional benefit if death results from an accident.
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Simplified Issue:
Simplified issue means that you don't have to complete a lengthy health questionnaire or get a physical to apply for coverage. Your answers to a few health questions will help determine your eligibility.
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Term Life Insurance:
This is straightforward insurance protection that covers you for a set period of time - the term. Since there are no savings or investment features, it can be one of the most affordable ways to buy life insurance. That's why many experts recommend this type of plan. Term insurance policies are renewable for one or more additional terms, even if your health has changed. Some term insurance policies can be converted to a whole life policy, even if you are not in perfect health.
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Whole Life Insurance:
Whole life insurance offers coverage for a lifetime, your premiums do not increase over time, and your coverage builds cash value. You can borrow against this cash value by taking a policy loan. For people who want permanent protection, whole life insurance can be a good choice.
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