A Guide to Life Insurance Frequently Asked Questions

A Guide to Life Insurance Frequently Asked Questions

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.