While no one likes to think or talk about life insurance, it’s a necessity that can bring about a significant amount of peace of mind. Death is inevitable and if it happens to you, you need to know that your loved ones are covered financially. This insurance coverage is easier to obtain than you might think and there is a multitude of different policies available.
In a pinch, you can even cash out on the policy early to receive much-needed money for emergencies or retirement. Thankfully, it’s easier than ever before to sign up for insurance online.
Understanding Policy Terms
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When looking through available online policies, you need to be fully aware of all terms associated with the contract you’ll be signing. This includes what’s included in the premium payments and what you can expect for your loved ones in the event of your untimely passing.
For instance, some companies only offer payments to their beneficiaries while others provide a lump sum of cash. Don’t hesitate to compare different companies before choosing the one that’s right for you.
In some cases, you may want to surrender your policy for cash. This is possible if you no longer want to be covered and would rather the money stored in the account to go to another purpose. This is called a life settlement, and it essentially involves the legal sale of a life insurance account to a third party. The process involves first getting an estimate on what your policy is worth and then working with a broker who will receive bids for the account. In turn, you receive cash value for selling off the plan.
Applying for coverage is simple and quick when done on the internet. First, you’ll need to provide the company with some basic information. This will include your name, address, telephone number and possible social security card. You will then need to answer some medical questions regarding your health. This is due to the fact that most companies want to know they’re giving policies to individuals who are healthy enough to put into the plan for many years. Getting life insurance as a high-risk senior may be more difficult, but it still isn’t impossible.
Possible Medical Exam
Certain companies require that their policy holders have a full physical examination prior to being approved for coverage. This is to ensure they are healthy enough to be covered. In most instances, medical exams are only necessary for policies that provide a lot of coverage. Smaller accounts, like those that may only pay out $50,000 after the holder passes away often do not require that any medical examination be done. Prior to applying for coverage, you’ll want to find out from the company in question whether an exam is necessary.
Keeping Up with Premium Payments
In order for your policy to remain active and for you or your loved ones to be able to draw on it, you need to make premium payments every month. In most cases, this can be automatically deducted either from a weekly paycheck that you receive or from a bank account. Depending on the amount of coverage you have and the company you’ve chosen to do business with, your premium rate will vary significantly.