More. Decreasing term policies have a death benefit that decreases over the term. You probably do. Ans: Insurance plans that do not come under life insurance are known as ‘General Insurance’. Which One Is Better: Term Life Insurance or Permanent? https://www.erieinsurance.com/-/media/images/erieinsurance/erieinsurancelogo.png, Enter a valid address, city, state or Zip, Try out our free life insurance calculator, why it matters to have life insurance outside of work. Considering all these obligations and resources, the difference between the two is how much life insurance you need. Answer : Life insurance is an insurance coverage that … Post a Job. People who purchase decreasing term policies usually have financial obligations that decrease over time (such as mortgage payments or loans). Whether you’re buying your very first policy or planning for the next chapter of your legacy, it’s common to have questions. A business owner can buy life insurance on his key employees, Creditors are allowed to take a policy on their borrowers. For most, term life insurance will be the preferred choice because it offers the most significant benefit amount for the lowest price. “No-questions-asked life insurance”, also known as guaranteed issue life insurance, is a policy which ensures your acceptance regardless of your current or past health challenges. You may want to supplement your current policy from work or add another term life insurance because you just had a new addition to the family. How much life insurance do I need, anyway? 61–70: You can buy 10 times your yearly income. Do I Need Life Insurance If I Have It Through My Employer? What is the policy’s purpose? This site is protected by reCAPTCHA, and the Google Privacy Policy and Terms of Service apply. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. (Want a more personalized answer – or a quote? Health Coverage: Go to http s://wsfcs.hrintouch.com to make changes such as: add or remove dependents or enroll/cancel insurance coverage. 32) What is thedifferent type of Life Insurance? Once I Buy the Policy, Will I Even Need to Change My Insurance Coverage? ", "Who influenced you to get an insurance policy?" 6. Why do I need to disclose my income on the application? Answering 5 Questions Related To Life Insurance Saturday, August 31, 2019. Instead, you will be charged a higher rate. No one is entitled to a funeral (for those who say, “I don’t really care what happens when I die”), so if no one pays for your funeral service, guess what? Some questions … Most of the time, we want a quick solution without reading a 1500-word article on the subject. If you have extra questions that aren’t mentioned in this guide, please make sure to add them to the comments below this article, and I’ll be sure to follow up. 50. The worst thing you can do is to apply to eight different companies to see who can issue you a policy because the more you get declined, the easier it is for other companies to follow suit and not approve your policy. How Can I Save Money When Buying Life Insurance? However, there are a few companies who offer up to one million dollars of life insurance coverage without the need to go through an exam. Why do insurers ask me about my family history? Today, we are so privileged to live in a day and age in which you can bark at your smartphone with a query, and your lovely Siri or Google assistant has the answer for you. However, most child coverages aren’t large enough to begin with (maximum benefit is typical $25,000), and they aren’t supporting a family financially, so none depends on them. Learn more about life insurance options from Erie Family Life or talk to your local ERIE agent for a free quote. However, two years after the bankruptcy is discharged, you can reapply without any issue. 20 questions about life insurance you were too embarrassed to ask by Jeanine Skowronski July 3rd, 2017 Share. Most companies give you three to four different accounts from which to choose based on your comfort level and financial goals. Life isn’t one-size-fits-all – and neither is life insurance.. Planning for the future can feel exciting and scary at the same time. What was the reason you were denied coverage in the first place (see a letter of declination if you don’t know the reason)? We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider. Future: college tuition, retirement funds. The companies within the Erie Insurance Group are not licensed to operate in all states. Compare Quotes From Top Companies and Save. What Do the Insurance Companies Test For? Insurance Multiple Choice Questions and Answers for competitive exams. These kinds of questionnaires are generally prepared for collecting a detailed overview about the kind of insurance … 7. It’s to prevent the extra headaches someone you love has to go through when they need to deal with all you left behind. Updated Dec. 18, 2019: Most people don’t know a lot about life insurance. Below are answers to 10 questions that will help you determine the insurance … 3 Coverage can lapse or guaranteed death benefit can expire if no premiums are paid following initial premium, if subsequent premiums are insufficient, or if account value is reduced by withdrawal or loan. Premium rates are typically based on factors such as age, gender, height, weight, health status (including whether or not you use tobacco), and if you participate in high-risk activities or occupations. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. To get the best non-smoker rate, you must abstain from tobacco for three to five years (each company has a different underwriting guideline). You should ask yourself these questions first. As mentioned before, life insurance underwriters specialize in assessing mortality risks. Planning for the future can feel exciting and scary at the same time. 15. If you have no children or dependents whom you support financially, you might not need a life insurance policy after all. Depending on the policy, your premiums may be level or may increase over the term. 24. Here are some common questions you might be wondering. 18. Quotes and offers are not binding, nor a guarantee of coverage. It’s worth noting that riders are purchased with the policy and can’t be added later. Well, most people don’t know a lot about insurance in general, but life insurance … She has over five years of experience in the insurance industry. Your local agent can help you consider the variables, lay out the options and make the process comfortable and efficient. At The Murray Group, we know insurance can be confusing. 40. The person who signs the contract with the funeral home is legally obligated to pay for it. 29. What does it mean when a policy is “fully paid up?”. If you have a term policy and do not make the payment within this grace period, the insurance company will usually terminate the policy. If I Stop Smoking Today, Will I Get a Non-Smoker Rate? 38. Keep in mind that most companies are only interested in death before the age of 60 of an immediate family member, and you will not be denied coverage if this is the only risk you pose. 41. You have bought yourself peace of mind that your beneficiaries will receive the death benefit if you should die within the term. If I stop smoking today, will I get a non-smoker rate? You obtain a policy to safeguard against financial catastrophe for your loved ones. 1. Life isn’t one-size-fits-all – and neither is, Here are some common questions you might be wondering. Besides, cases for a child’s death are very slim, statistically, and although it may be the most tragic experience, life insurance won’t really help. I filed for bankruptcy. Can I Get a Better Price If I Buy Directly from the Insurer? So, if you are a felon who bought a policy and went back to jail, they can’t rescind your coverage now, and if something happens to you while in prison, they must pay the death benefit. (The recommended amount is 10 times yearly income.) However, a better way to remedy this is first getting the facts right. Disclaimer: EffortlessInsurance.com strives to present the most up-to-date and comprehensive information on saving money on car insurance possible. I get this question all the time, and I always respond with the same definitive “NO, you shouldn’t.” Since many people consider term life insurance as a total waste of money, insurance companies had to come up with an approach to lure you in. (67.8 percent) of released prisoners are rearrested. This is why you need to do research on the broker you want to work with rather than looking for the best rate. Additionally, policies such as final expense are approved on a simplified issue basis, and do not require you to take the exam. Choosing the right broker is the key to obtaining the best policy. That is why we took the time to answer the 100 most frequently asked insurance questions and post them here on the Albany Insurance Blog.. Life Insurance: Most Frequently Asked Questions. Most importantly, group coverage doesn’t offer sufficient protection and typically offers two or three times your yearly income, which by all accounts, isn’t enough. Term insurance plans cover you for a term of one or more years, and it pays a death benefit only if you die in that term. A portion of your premium payment goes to cover the cost of insurance (COI), and the remainder is parked in a designated account to earn interest. What Is Accidental Death and Dismemberment Insurance? Go to erieinsurance.com for company licensure information. Insurable interest is a reason to buy life insurance on someone else because you could undergo a financial disaster if they die. Moreover, the quotes you see online aren’t the rates you will actually qualify for. Flashcards in Insurance Multiple-Choice Questions Deck (44) ... social insurance, automobile insurance, and life and health insurance B) social insurance, life and health insurance, and general insurance/property and casualty insurance. Additionally, I need to know the requested face amount and policy type just as a starting point. 10 Must Know Life Insurance Questions And Answers 1. How can you afford to pay for life insurance?) He will also need to supply the death certificate (not a copy) along with the deceased’s policy number, social security number, and address. That depends. Why Did the Life Insurer Deny My Application? So, go and take the provided Insurance Awareness General Knowledge Online Test. After two years, an insurer can’t challenge the death claim and must pay the benefit. This is probably the most commonly asked question. Secondly, these policies are overpriced, and the maximum death benefit will not exceed $40,000. It’s worth mentioning that you should never lie about your smoking habits to the insurer. The insurance products and services described in this blog are not offered in all states. Some term policies have a return of a premium feature that allows for a refund of all or some of the premiums you paid through the term of the insurance if no death benefit was paid. How can I save money when buying life insurance? Your ERIE agent can offer you practical guidance and answer questions you may have before you buy. Firstly, there is a graded benefit clause which will not pay the full death benefit amount should you pass away during the first two policy years. What happens if I miss a premium payment? A broker’s job is merely to estimate the rates as accurately as possible based on your unique circumstances so that you will not be surprised when the underwriter comes back with the final prices. The questions on every life insurance application aren’t always the same from company to company. Life insurance prices are fixed by law and are subject to the insurance carrier and the state’s department of insurance approval. ERIE life insurance and annuity products are not available in New York. However, insurance companies are in the risk evaluation business, and they view applicants with a criminal history as high-risk individuals. After all, insurers are on the hook for millions if you die soon after getting the policy. 14. What is a graded benefit life insurance policy? An accidental death and dismemberment policy pays a death benefit to beneficiaries ONLY if you die as a result of an accident-related event. Hence, buying a policy isn’t really for you. Primary beneficiary: The first one in line to collect the death benefit upon the insured’s death. crowdfunding is no substitution for life insurance. Should I Buy No-Questions-Asked Life Insurance? This information may be different than what you see when you visit an insurance provider, insurance agency, or insurance company website. 51–60: You can buy 20 times your yearly income. They refrain from insuring felons because, within three years of release, about two-thirds (67.8 percent) of released prisoners are rearrested. Since many potential buyers don’t understand life insurance nuances, they fall prey to the wrong brokers or agents who just sold them on the idea that they bought life insurance at the best price. Risk classification, also called health classification. What happens if I miss a premium payment? How Much Life Insurance Should You Buy? Here are a few common purchased riders: That’s the easy part because every life insurance website and his dog offer life insurance quotes online. As a client, you may choose to work with a broker because he can shop all companies and offer you the best one for your situation. The insurance products and rates, if applicable, described in this blog are in effect as of November 2020 and may be changed at any time. Life insurance’s primary purpose is to prevent financial hardship for your loved ones. Facebook Twitter Email LinkedIn SMS WhatsApp. by You need to know all the issues related to the Insurance Awareness from this article. Universal life insurance, also called UL, is a permanent type of coverage that provides guaranteed death benefit payment to heirs, cash value accumulation on a tax-deferred basis, and the ultimate advantage of flexibility. If you just had a bankruptcy, the insurer believes that you will not pay for the coverage you just acquired. 5 Insurance Agent Interview Questions and Answers . The more quotes you compare, the more chances to save. 1 Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time. Am I still eligible for coverage if I have a serious health condition? The problem is that you will spend two to three times as much in premiums, and if you outlive your term period, you will only get your money back without any additional interest, so your money just worked for free. What If I Die Without Life Insurance? The older you are, the higher the premiums, and the more risk you have of developing a health condition that could increase your premium even more or disqualify you from getting coverage at all. I Filed for Bankruptcy. First thing first: If you or someone you know is considering suicide, please talk to someone about your thoughts. Below are examples of each type of need: Financial resources can include your partner’s income, savings, income-producing assets, and investments. et al. Most plans do require medical testing and charge premiums based on the level of risk they assign to you based on the testing. What is a graded benefit life insurance policy? 3. What to do if my application was declined? Large life insurance companies want to gather a lot of … If you’re buying a permanent policy, the cash value will also be smaller for several years. Should I buy return of premium life insurance? Do I need a medical exam to purchase life insurance? Do I Need to Buy Life Insurance for My Parents? All insurance rates, products, and services are presented without warranty and guarantee. Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. However, even if you are not in top health or have a serious health condition, there are still some options available with guaranteed issue plans, although this comes at the cost of a higher monthly premium and a lower death benefit. Most policies have a contestability period of two years after you buy the policy. A child’s policy can provide a saving vehicle, the ability to buy more coverage in the future without proving insurability and also pay the death benefit in the event of a child’s death, which can be used for burial expenses. 2. Learn more and request a quote. Here is a post I wrote about life insurance sample rates which reveal costs based on age and gender. Insurance MCQ Questions and answers with explanations. 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