Three Things To Know About Life Insurance

Your life insurance policy can be one of the most important forms of protection that you can have for your loved ones. While individuals may not enjoy thinking about planning for their eventual death, it can be extremely beneficial to learn more about this type of insurance so that you will have a better understanding when buying this type of protection.

There Is A Difference Between A Term And Whole Life Policy

Individuals will often be unaware of the difference between the various types of life insurance policies. In particular, it is common for there to be some confusion about the difference between a term and whole life policy. Under the conditions of a term life policy, a person will have to die during the time frame covered by the insurance policy. In contrast, whole life policies will cover your death as long as the policy is active. An additional benefit of holding a permanent life insurance policy is that you may eventually be able to cash out part or all of the benefits, but the rules and stipulations for this will be dictated by the laws of the state where the policy was issued and the rules of the underwriter.

Not All Causes Of Death Will Be Covered Under The Policy

It is important to be mindful of the fact that life insurance policies can have extremely different terms of coverage. These terms will outline the causes of death that will be covered by the policy. For example, it is common for suicide to void the benefits of a life insurance policy. Before you make a decision about buying a particular insurance policy, you should closely review this part of the insurance contract so that you can effectively compare the different options that are available.

It Can Take Up To Several Weeks To Receive Benefits

In the event of someone needing to file a claim for your life insurance policy, they may find that there is a waiting period of up to several weeks. This is due to the time needed to process, verify and send the payment. Due to this delay, you should discuss the importance of filing for these benefits as soon as possible with the named beneficiary. During this conversation, you should also provide them with clear instructions on where your life insurance documents will be stored. This simple step can help to prevent unnecessary delays that could cause hardships for your loved ones as they attempt to move forward with their lives.

For more information, reach out to lawyers at firms like Scott E. Shaffman Attorney At Law who specialize in life insurance claims.