Life Insurance Policies

Nobody likes to talk about death, not even the undertaker does. However, sometimes we are bludgeoned into honest discussions concerning our future and those of our loved ones. Life assurance is just but one of those forthright consultations we engage in with our loved ones. Despite the sombreness associated with the topic, life indemnity is a sound financial plan. Envisioned at protecting the future welfare of your dependents, especially your kids and spouse. Some must-have facts about life assurance policies at your fingertips include:

#1. There are different types of life insurance policies

The world of insurance presents an overwhelming number of life indemnity options. Depending on the location and insurance providers in a given locality, a citizenry can access up to fifteen different options of life policies. These can be broadly categorized into term and permanent policies, based on how long they are affected.

The former covers the insured only when he or she needs it; is inexpensive and lasts for the time agreed on by both the insurer and the insured. On the other hand, the latter entails more complexities, is costly and lasts for a life term. Whatever the choice, a life insurance policy is a must-have implement that lets one sleep less worried about the financial burdens of his or her loved ones in the event of unexpected death.

#2. Insurance companies can deny beneficiaries life insurance benefits in case of misrepresentation

Unlike other types of insurance which bear significant possibilities of being challenged by insurance companies if the policyholder acts ultra-vires of the policy agreement; life insurance is considered a fairly seamless process with fewer tussles between the beneficiaries and the insurer. However, this is not always the case, especially when misrepresentation is detected.

But what is a material misrepresentation in life insurance? A material misrepresentation is presenting false material information to the insurer in order to influence how the insurer will issue the policy to the insured. If such inaccuracies are realized by the insurer after the contract has commenced, then the beneficiaries can be denied coverage upon policy maturity.

#3. Life insurance policies can be on opposite sides in terms of premium requirements

Depending on when and in what state you secure a life assurance policy, you could end up incurring expensive or inexpensive premiums. Age and health are the critical determinant of the premiums payable by a policyholder. Consequently, since age and health heavily impact the premiums payable by an individual, it is advisable that one purchases life insurance as early as possible. Therefore, if you find yourself procrastinating the decision to purchase a life assurance every year, beware that the older you get the more expensive it will be to fund the policy.

#4. Life insurance is not an investment but a sound financial plan

Finally, you might have probably come across insurance agents peddling the idea that life assurance policies are investments which is misleading. Life insurance policies are sound financial plans. However, just like investments, they require regular review and in-depth consultations between different entities.