Life insurance is a difficult topic to address because it means asking, and answering, some pretty personal questions. You may be wondering whether you’re too out-of-shape to get approved for a policy, if you’re too old, or whether you can name someone other than your spouse as your beneficiary. Don’t let these questions, however uncomfortable they may be, get in the way of your life insurance policy. We’re here to provide you with a handful of helpful answers to personal questions you might be too nervous to ask your insurance agent. When you have the answers you need, you can make the best decision for you and your family.
Question #1: Can I still get life insurance if I am too unhealthy?
Probably not. It depends on the life insurance company you choose and what you mean by “unhealthy.” Some insurance companies require a full medical exam and ask you to provide your height and weight so they can calculate your body-mass index (BMI).
Other companies, like some the ABC Insurance Agencies represent, don’t require a medical exam at all. We simply ask you to answer a few questions related to your health, none of which specifically relate to your weight. The questions relate more to diseases, cancers, tumors, or disorders (like diabetes, high blood pressure, multiple sclerosis, acid reflux, asthma, etc.) that you may have been diagnosed with or treated for within the past year or two. Insurance companies know that no one is perfect, so don’t automatically assume that you won’t be eligible for coverage if you have a medical condition.
Question #2: Can I list my beneficiary to be someone other than my spouse?
As the policyholder, you can designate practically anyone as your beneficiary: your dentist, neighbor, best friend, you name it! You can even designate multiple beneficiaries or have the proceeds of your policy paid out to your favorite charity.
If you choose someone other than your spouse as your beneficiary, there are a few things to keep in mind. One, life insurance companies typically won’t pay the proceeds directly to a minor, says Nasdaq. Two, if you live in a community-property state your spouse will have to sign a form waiving their rights to the money should you choose to designate someone else as the beneficiary. Community-property states include: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Question #3: Am I able to buy life insurance policies for my kids?
Through ABC Insurance Agencies, parents can purchase a term life policy for their adult child only with the child’s written consent. If you’re considering doing so, it may be a good idea to ask yourself, “Why?” Life insurance is generally purchased to help replace someone’s wages should the unexpected occur, as the proceeds of a policy can help pay for everyday expenses like groceries, bills, or car payments. While most children don’t have an income that would need to be replaced, they could have funeral or memorial expenses. If these are costs that you, as a parent, worry about being able to cover for an adult child, a term life policy could be a good idea.
Question #4: Is there a certain age when you can’t get approved for a life insurance policy?
It depends. Similar to our first question, the answer to this one depends on several factors, including the life insurance company you choose, the type of life insurance you choose (term vs. permanent), and your age. Life insurance quotes tend to be lower and more affordable when you’re young and healthy. As your age goes up, your quote is likely to go up as well. Some companies do not offer life insurance to people who reach a certain age.
Question #5: What happens if I don’t pay the premium because I can’t afford it?
Unfortunately, there are some situations in which your term life insurance policy could be terminated, and this is typically one of them. Remember: your premium is the amount of money you, the policy owner, agrees to pay for the life of the policy. It’s how you fulfill your end of the agreement with your insurance company. If you stop paying premiums, says the Insurance Information Institute, your coverage lapses. Or if your down payment or one of your premium payments does not clear a financial institution, your insurance company may terminate or rescind your policy. (Note, termination guidelines tend to vary by insurance company.)
Life insurance is pretty uncomfortable to talk about as it is. It combines two things people hate talking about: personal finances and death. We’re here to make things a little easier, though. Start small by having a conversation about life insurance with your family (we’ve got tips to start that dialogue too) and give one of our knowledgeable agents a call at 800-708-0123 Learn more about term life insurance and get your fast, free quote today. No question or concern is too silly at ABC Insurance Agencies! Make “a better choice” for your peace-of-mind today.