TERM LIFE FAQ'S CONTINUED

Here are more of our most frequently asked questions about term life insurance. ( term life faqs)

11. Who can be a beneficiary?

A corporation, a trust, a partnership or any individual may be a beneficiary. It is common for businesses to insure their key employees, their owners or principals or officers or anyone at the death of whom the business would suffer. It is most common for parents to carry life insurance in favor of each other and their children. Even estates are named beneficiaries for the purposes of liquidity and taxes.

More Term Life FAQ' S- Frequently Asked Questions

12. What is an insured?

The insured is the party who will be insured.

13. What is an owner?

An owner is the party who has control of the policy. Only the owner may change beneficiaries or execute assignments, etc. Most often, for family use, the owner, insured and premium payer are the same person.

14. Who can be an owner?

Individuals, corporations, trusts, partners or any party with an insurable interest may be an owner.

15. Will I need a medical examination?

Medical exams by physicians including chest X-rays and EKGs are usually required only for large face amounts (death benefits). It is usual, however, for an insurance company to require a Paramedical Exam which will involve a lot of medical questions, a urine sample and a blood test.

16. What is a paramed?

A paramed is an individual who is a licensed phlebotomist (licensed to draw blood) who will visit you at your location of choice at a time of your convenience.

17. Who pays for the medical exams or the paramed exams?

The insurance company almost always pays for exams it requires.

18. How are premiums paid?

Premiums may be paid by an automatic withdrawal from your checking account or with a mailed check by the month, quarter, semi-annually or annually. It is important to note that there is an additional charge for paying life insurance premiums other than annually. The charge increases as the frequency of payment during the year increases.

19. Are tobacco users charged more?

Yes! And there may be a substantial difference in charges between insurance companies. You should consult a broker you trust to get the best rates.

20. How hard is it to apply for life insurance?

It is not hard at all. There are some applications that can be begun by telephone or over the Internet. We can help you with that.

Questions? Give us a call for help. We make is simple.


Back to the top of the term life faq page