How to Evaluate a Life Insurance Quote

Is My Life Insurance Policy Annulled if I Don’t Pay the Required Premiums?

Your policy may be annulled if you don’t pay your premium by the due date, but there are ways to avoid that. The insurance company will give you a 30-day grace period within which you can pay your premium and bring your policy back into the “Status: Current” category. If you don’t remit the premium money after the grace period, your policy typically would lapse.

 

Have a conversation with your insurance agent or read the fine prints as well as the terms and conditions of your policy to better understand policy lapsing.

If you have a permanent policy, your insurance company would cover the late premium payments with whatever cash value there is in the policy. Remember to opt for a “waiver of premium” provision when filling your application; that way, if you become disabled, you would not have to pay premiums for the length of time you remain disabled.

Can I Have Multiple Life Insurance Policies?

You can have multiple life insurance policies from one or multiple insurers; the choice is yours. For example, you could buy a term life policy from one insurance company to address short-term needs, and purchase a permanent life insurance policy from another insurer to achieve other goals. Be mindful, though, that the insurance company might ask why you need more than one or two coverage plans if it figures out that you apply for more insurance than you need.

Who Can I Name as Beneficiary in My Life Insurance Policy?

Many people choose their spouse as the sole beneficiary of their life insurance policy, but you can choose who you want. Remember, you also can name multiple beneficiaries on the policy, depending on your family dynamics and the need to ensure the welfare of specific loved ones, among other reasons. For example, say you have a $250,000 individual life insurance policy. You could name your spouse and child to divvy up the policy equally at $125,000 each.

 

What Types of Information Life Insurance Companies Scrutinize in Medical Exams?

Talk to your insurance agent before you take the medical exam required as part of your life insurance application. That way, you know upfront the medical restrictions on the policy, what is out of the coverage scope, and how any personal health condition would affect your premium quote.

A medical exam helps collect information on things like a blood sample, height, urine sample, and blood pressure, along with your health history, family, gender, age, and fitness level. The insurance company uses this collection of data to figure out the rate class in which you fit. Note that you can always reduce your rate by improving your health and fitness level, and this is something your insurance company can explain to you more.

Recap

Don’t take the selection of a life insurance company lightly. The choice you make could affect payout amounts along with a miscellany of elements ranging from premium quotes and medical exclusions to cash accumulation and coverage term. To reduce your premiums, do an online quote comparison, reduce or eliminate your personal health hazards, and purchase multiple policies from the same insurance company.