At LifeQuotes, we are frequently asked questions about life insurance. Please continue reading for the ten most frequently asked questions about life insurance and their answers.
What are life insurance riders?
A rider can be added to an existing policy to add additional coverage and is typically sold separately.
Why should I purchase life insurance if I am single?
You may wish to minimize tax implications, and you never know when your circumstances will change. The younger and healthier you are, the better your chances of obtaining low-cost life insurance. If your life circumstances change, such as marriage, you can always revisit and add to your existing policy.
Which type should I buy?
Uncovered medical bills; funeral and estate-settling costs; outstanding debts and mortgage balances; and college tuition should all be covered by your life insurance policy. This is merely a summary of the items that your life insurance policy should cover. A qualified professional and a life insurance needs calculator can assist you in making the best decision.
How do I go about reporting a death?
When the insured dies, the insurance company should be notified right away, and a death certificate should be requested.
What makes a beneficiary different from a contingent?
The beneficiary is the person or entity named to receive the proceeds of the insured’s death. In the event that the primary beneficiary is unable to receive the proceeds, a contingent beneficiary is designated.
What if a person does not have a beneficiary?
Proceeds can be paid to the estate and distributed by an executor, but not having a beneficiary is never a good idea.
Can I raise my rates if I occasionally smoke marijuana?
Those who admit to smoking marijuana and have the substance detected in their bloodstream during a physical examination are classified as smokers.
What about e-cigarette use?
Because they contain nicotine, you are still considered a smoker, and it is unknown if e-cigarettes are safer.
What if a person dies as a result of a drug overdose?
If it is ruled accidental, the policy will pay out.