It’s difficult to say goodbye to your loved ones. It’s even more difficult to grieve for your loss while simultaneously having to struggle to pay funeral costs and other costs associated with death. This is why it’s so important to have a life insurance policy. Read this article and find out some great insurance-based info.
When creating a life insurance policy, never name your minor children as the beneficiary. The flaw in this plan is that minor children cannot inherit money, so it is handled by a custodian appointed by the state or the insurance company. This custodian might not be the surviving parent. In addition, placing your child as the beneficiary allows them access to the full fund as soon as they turn 18.
When designing your life insurance policy to pay out to a spouse, consider the tax implications of the titled spouse owning the policy. When the titled spouse dies, the policy payout then becomes part of their estate, and transferring those funds to the living spouse creates a tax burden. If the non-titled spouse owns the policy the funds are not considered to be part of the deceased’s estate.
Be sure to tell the truth when applying for life insurance. The company you are applying for a plan with will more than likely verify that the information given on your application is the truth. Being caught in a lie with these companies could prevent you from getting life insurance.
Consider a convertible policy if you cannot decide between term or permanent life insurance. This type of life insurance policy starts out as term life insurance, and if they choose to before the term expires,the insured can convert the policy to permanent insurance without having to take a new medical exam.
Do not go with a ‘guaranteed issue’ policy unless you are out of other options. This type of policy is designed for people with health conditions that prevent them from attaining a normal life insurance policy. Getting a guaranteed life insurance policy does not require you to get a medical exam. You will have to pay higher premiums though, and the coverage may only be available for limited amounts at face value.
You need to find out what exclusions or limitations are included in your life insurance policy. There are certain things that a life insurance policy will not cover. If you do not want to leave your family in debt, you need to take the time to find out what is and what is not covered under your life insurance policy.
You have a lot of options when it comes to the type of life insurance you will purchase. Depending on your age, your level of coverage needed and your budget, you will need to have your insurance agent or representative explain these to you in detail. Make sure to ask lots of questions, don’t just take their word for it.
The truth is that we never know when tragedy is going to strike. It’s always important that you’re prepared for it and that you’re leaving your loved ones in a good situation. The tips you just read will help you find a great life insurance policy that will be affordable and will pay off in a timely fashion.