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Term Life Insurance

Term life insurance refers to a kind of insurance policy that gives coverage to an individual at a fixed rate of payments. This policy is only for a specific period time. Once the time limit is up, the coverage may not be available for the previous rate and the individual may have to get new coverage or give it up. Given below are some important questions about term life insurance that have been asked.

Can a spouse be denied the death benefits of their ex spouse term life insurance in the state of New York?

In most situations, a divorced person may be considered as not having any insurable interest in the ex-spouse’s death. Hence, the company may withhold the death benefit and not pay the ex-spouse. However, if the spouse had paid the premiums of the policy, then the insurance company may be required to repay the individual all the premiums that they have paid. If the spouse has children who are minors, then the company may have to pay the death benefits to the spouse.

Will denial of a term life insurance due to high premium rates affect an individual’s insurance ratings in the future?

Denial of an insurance policy may not affect an individual’s insurance ratings. People are normally given a 10 day free look on any policy they purchase. The individual may deny the policy within these 10 days.

What is the difference between permanent life insurance and term life insurance?

Permanent life insurance is considered to be a mixture of life insurance and an investment product. The payout in a life insurance is guaranteed but the premiums are higher. On the other hand, term life insurance is cheaper and is considered to be true insurance. The beneficiary of the insured person in term life insurance will receive the money if the insured person dies before a specific age. However, if the person lives longer than the age specified, then he/she may not get anything at all.

Can the proceeds of a term life insurance be used to pay off IRS debt?

In most situations, the IRS may use a person’s term life insurance benefits to pay off debts. If there is any amount left after repaying the debt, it will be given to the beneficiary.

Is it possible to convert a term life insurance policy to a whole life insurance?

It may be possible to convert a term life insurance policy to a whole life insurance policy. However, the premium amount that needs to be paid for a whole life policy will be higher than what the individual paid for the term life insurance policy.

Which would be considered to be the cheapest form of term life insurance?

The cheapest form of term life insurance may be a term insurance policy with no cash value and no additional covers and benefits. The commissions that are normally payable to the people are reduced by the insurance providers in a cheap life insurance. There are various kinds of cheap term insurances like the level term life insurance, mortgage protection also known as decreasing term life insurance and increasing term life insurance. However, an individual may be denied this kind of insurance in some situations like if he/she has cancer, kidney dialysis, organ failure, Hepatitis, heart attack, stroke or if he/she is HIV positive.

There are a large variety of insurance options that are available to people these days. How does one figure out the different features of these policies and decide which the best policy is for an individual. Having knowledge about the guidelines of these insurance policies and understanding their different rules and features will help you take an informative decision about which policy to opt for. You may ask an Expert if you have any questions or doubts regarding these policies.
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