Term Life Insurance Blog

What Is The Difference Between Life Insurance And AD&D?

Life insurance coverage pays the death benefit proceeds from the policy upon loss of life of the insured person.

The cause of death is irrelevant, except for a few conditions such as suicide is excluded during the first two years, one year in some states.

Accidental death and dismemberment insurance pays the death benefit proceeds for accidental death or dismemberment of the insured person.

Most death is usually caused by natural causes, which means that Life insurance policies pay out a death benefit far more often then do accidental death insurance policies.

In addition, some AD&D insurance policies require that death occur within a specific period of time after the accident, such as, within 6 months of when the accident happened, in order for the death claim to be paid out on an accidental death policy.

Learn more about accidental death insurance and how it works.

When Does Life Insurance Start?

In order to find out when your life insurance coverage starts you may want to ask your life insurance agent, or the life insurance company.

Most life insurance policies define the start of coverage to be:

1. When the application for life insurance is accepted and approved,

2. Payment is received, and

3. No outstanding policy delivery requirements remain outstanding.

Usually, no life insurance agent has any binding authority with life insurance, which tells you right there how strictly the start-of-coverage rules are with life insurance.

Note: Once you think your life insurance coverage is in force, ask for a note or letter from the life insurance carrier stating so in writing.

Do not assume that your life insurance coverage is "In Force" until and unless all 3 conditions above have been met.

Can I Get Life Insurance On My Dad Without Consent?

No, you can't buy life insurance on your Dad without his consent.

In order to take out a life insurance policy on another person, you must have their consent and there has to be an Insurable Interest.

Insurable interest means you rely on that person for some form of financial support, or you would suffer some financial loss of the person you want to insure were to die.

The insured has to understand what he or she is agreeing to, and be able to sign on his own behalf.

Even with a power of attorney, many life insurance companies may still not approve a life insurance policy, because the medical history may contain a medical condition that is considered "Uninsurable" - meaning that the reason the power of attorney was invoked is because the person has a medical condition the insurance carrier would not want to insure for life insurance.

Continue reading "Can I Get Life Insurance On My Dad Without Consent?"

How Do I Determine How Much Life Insurance I Need?

If you're buying life insurance you want to make sure you get the right amount so your loved ones are properly covered, and financially secure in case you die.

There are several ways to determine your life insurance needs.

However, the most accurate may be to use a life insurance needs calculator.

You just answer some questions about your current financial situation and insurance needs, and the calculator gives you an instant, accurate estimate of how much life insurance you really need to meet your goals.

Here's a quick and easy life insurance calculator you can use to determine your life insurance needs. It only takes a few minutes.

What Is A Life Insurance Premium?

A life insurance premium is the money paid to the life insurance company in exchange for their willingness to pay out the face amount of the life insurance policy to the beneficiary if the insured person dies.

Some life insurance policies will return the premium if death does not occur by the end of the term of your term life insurance policy, which is called a return of premium term life insurance plan.

The owner of the life insurance pays a premium on a regular basis (monthly or annually, usually) in return for the insurance company promising to pay the death benefit of the policy upon the death of the insured person.

Premiums for life insurance are based on the type and amount of life insurance, as well as, the longevity expected of the insured - how long the insured is expected to live, based upon the insured's personal risk factor's including age, gender, health, driving record, family health history, lifestyle, etc.

Here's how you can learn more and compare life insurance premiums among several leading life insurance carriers.