Life insurance is something that often seems more complicated than it is. This simple guide from your friends here at Client First Insurance Solutions in Americus, GA should help clear the confusion.
Applying For Life Insurance
An application for life insurance will always include answering questions about your health, your family’s health, your lifestyle, and your personal information. There will also be an interview and typically a medical exam. All of this is necessary for approval and to determine what options and rates are available to you.
You will also need to make decisions about which type of life insurance coverage you want as well as specifying your beneficiaries, those who receive insurance funds upon your death. Have a minimum of a primary and a secondary beneficiary in mind in case the primary cannot be contacted or even passes before you.
Types of Insurance
There are two basic types of life insurance- term life and whole life- and the one you should choose will depend on your goal. Term life only covers the insured for a specific amount of time. If you simply want to be sure your spouse can pay off the mortgage or get the kids off to college in the case of your premature death, you should consider a term life policy.
The length of time you choose should be enough to cover the period you are concerned with. For instance, if you have ten years left on your mortgage, you might consider a 10-year term policy.
Whole life is designed to cover the insured for their entire life as long as the policy is being or has been paid. If you want to be sure your loved ones are cared for, no matter when you pass, a whole life policy might be the better answer.
What Happens Upon Death?
Upon death, the beneficiary or beneficiaries can file a claim to receive the death benefits. Your insurance agent will approve or reject the claim according to whether the deceased’s policy covers the cause of death, or the agent will request more information. If the claim is approved, the insurance agent will arrange the payout of the death benefits.
No one wants to face their passing, but it is vital to do so to take care of loved ones. If you have any questions or would like a no-obligation quote, give Client First Insurance Solutions of Americus, GA a call today!