Brief Introduction into Term Insurance

These are basically the two types of life insurance. The type you choose is totally up to you. Just like the name implies, Term insurance is bought to provide a temporary death protection benefit. Permanent insurance on the other hand is designed to provide protection for the entire life of the policyholder. As you may have rightly guessed, Permanent insurance is more expensive than buying Term insurance.  

If you have your children as your only dependents, then you may consider having a Term insurance. You could decide you want such insurance until all of them have graduated from college. In other words, you want the insurance policy to provide financial assistance to ensure all your children finish college, even if you pass away. Similar reasons like this are the reasons people settle for Term insurance.

A Term insurance can be canceled by the insurer only when the policyholder fails to pay premium for it. Usually most insurers give a 21 day grace period from the last due date for premium payment. If the policyholder is able to make payment before the expiration of the grace period, the Term insurance is still in effect. If the grace period expires, then policy is automatically canceled.

Whether the premium rate will change over time can only be determined by the kind of Term insurance you bought. Usually Term insurance policy is categorized into Level or Increasing policy when it comes to premiums. It is best you fully understand all that pertains to the policy before settling to buy it.

Changing Beneficiaries on Your Life Insurance

As long as you are the owner of the life insurance policy, you can change your beneficiary anytime and to whomever you want. The ease at which this would be done will largely be determined by your insurance company. Usually they require that you meet certain conditions first before enacting such changes.  

When applying for a life insurance, there is an option that would allow you indicate if you want the beneficiary to be irrevocable. If this is done, it means you would need the consent of the beneficiary before changes can be effectively made. If there is a need for a change, the best and first thing to do is to call your insurance agent and notify him/her. The agent will help you fill out the form for a beneficiary change.

The initial beneficiary will still have right to your policy buy you can add more beneficiaries to share from the policy. If you do not have an insurance agent or cannot reach the agent, you can call your insurance company directly and explain things to them. Insurance companies like Greater National Group always have a life insurance expert on call at any time to help address issues like this.

What Can Void Your Life Insurance?

Although we are required to fill out forms correctly with all necessary information when purchasing a life insurance, what happens if you leave out some details? Another probable question is if future health decisions can void your life insurance. While this may seem strange to some people, there are many people who fall into this category. You could choose to refuse treatment for an illness that affects your life on the grounds of religion. You could also prefer alternative medicines to mainstream ones, etc.

If you falsify or withhold certain information in your form, I can actually make your policy null and void. There seems to be an exception to this. According to life insurance experts at Greater National Group, in most cases, once the contract is already signed you are still covered by the terms in the contract. Life insurance policies will still cover you if you refuse to take treatment or refuse a certain kind of surgery. The policy can only be void if it was discovered before the policy is written.

For this reason, many insurance companies often include a two-year contestable period. During this time, the company has the legal right to rescind on your policy if there is proof that you misinformed or falsified information on the contract. Anything beyond this period, your claim will be paid to you nonetheless. 

Is Life Insurance Really Important?

While many people do not like the topic of general insurance, life insurance tends to put them off on a whole new different scale. As much as death is inevitable, many of us have refused to accept the fact that it will surely come. So help better explain this avoidable subject, we decided to do an interview with some of Greater National Group’s insurance experts. Here are some of the questions they provided answers for.

Who Needs and Does Not Need Life Insurance?

Anyone with a dependent is an ideal candidate for life insurance. By dependents we mean spouses, children, and sometimes elderly parents. Young and single individuals do not necessarily need life insurance because they have no dependents – someone to care for.

How Can Someone Know the Exact Type of Life Insurance to Purchase?

The truth is that temporary insurance is able to meet most people’s needs. The premium is less expensive than permanent life insurance. Just like a commodity, it can be bought form a very wide range of top rated insurers. Unlike permanent life insurance, it is relatively easy to understand.

How Can Someone Know the Amount of Coverage they need?

With life insurance, the primary focus is your dependents. So the amount of income they will need when you are no longer able to support them should be the determining factor.

Understanding the Gaps in Life Insurance

This is an insurance that doesn't necessarily benefits the direct holder but goes a long way to help others. Taking into account the advantages of having a good income and great saving abilities, you would still need a good life insurance as backup. This will help give your family and friends the kind of life they had while you were still alive.

When situations change, your life insurance policy can also be affected. To better understand this, let's use a change of job. If you change jobs, your insurance policy would need to be reviewed. If your previous employer offered permanent life insurance and the new one offers a limited temporary life insurance, you are no longer as covered as you once thought you were. This gap in life insurance has cost so many people later on. Always review your policy to make sure it still supports the coverage as it once did. GNG insurance experts always advise that clients make it a duty to visit the company when there is a change in life patterns.