Applying for term life insurance 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. (And hey, if we don’t cover your question below, feel free to reach out to us in a private message on Facebook or click on Live Chat on DirectGeneral.com.)
Question #1: Am I too unhealthy to get life insurance?
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 Direct Auto Insurance, don’t require a medical exam at all. We simply ask you to answer a few questions related to your health, none of which are related 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 my beneficiary be someone other than my spouse?
As the policyholder, you can designate practically anyone as your beneficiary: your dentist, neighbor, secret lover, best friend, you name it! You can even designate multiple beneficiaries or have the proceeds of your policy paid out to your favorite charity.
There are a few things to keep in mind, however, if you choose someone other than your spouse as your beneficiary. 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: Can I purchase life insurance policies for my kids?
Through Direct Auto Insurance, 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: Am I too old to be approved for a life insurance policy?
Probably not. Similar to our first question, the answer to this one depends on your age, the life insurance company you choose, and the type of life insurance you choose (term vs permanent). 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.
Question #5: What happens if I can’t pay the premium?
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 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 1-877-GO-DIRECT (1-877-463-4732). Learn more about term life insurance and get your fast, free quote today. No question or concern is too silly at Direct Auto Insurance!
*Individual term life insurance by Direct General Life Insurance Company, Nashville, TN. Policy 58TL02010713. Premium and other terms will vary by state, the insured’s age, and the selected coverage and pay plan.
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