Life insurance – Read the fine print!
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by: alicecristofoli0
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Word Count: 416
Date: Fri, 14 Oct 2011 Time: 3:43 AM
Due to the abundance of life insurance companies in the U.S. and Canada, many homeowners are lead to believe that they have all the right grounds to give up their current policies. Truth be told, in certain circumstances and for educated consumers swapping their current insurance with a policy that has lower rates is definitely a good idea. At the same time, the stiff competition determines certain unscrupulous brokers to compel already insured people to exchange their current policies for others for all the wrong reasons. This is why, before you take this step, take a moment and examine if the switch is actually worth it.
In case you are currently looking for a life insurance policy, then you should pay attention to the plans that do not previous medical testing. Usually, the no medical life insurance can be classified into two distinct categories, the simplified and the guaranteed issues coverage. While they have lower premiums compared to a regular life insurance policy, the only thing you will get from them are the death benefits. In general, the amount that the beneficiaries will receive include the total sum resulted from the paid premiums along with an interest rate. Since this type of life insurance does not bother with your state of health at all, that makes them ideal for people with serious health issues.
Two of the clauses that you need to scrutinize are the accidental death and the exclusions. Although major insurance companies, such as Canadian Protection Plan, do not engage in these practices, more often than not the less known insurers will try to sell these coverage to unsuspecting customers. It is important to note that policy holders will rarely benefit from this coverage and that this is very profitable for the insurers, as only three percent of the claims are actually paid in case of accidental deaths.
Regarding the exclusions, most insurance companies will not pay your claims if the policy holder has committed suicide. However, some companies will introduce travelling and recreational activities exclusions to the contract if the owner of the policy is engaged in what they consider hazardous actions. Therefore, if you are travelling constantly or prefer doing extreme sports for instance, you should avoid these policies. Alternatively, you can discuss them with the broker. As a side note, the only thing that you cannot change in an insurance policy is the determined period when you can make the claim, which is usually two years after signing the contract.
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The key to finding the best life insurance that will fit you and your beneficiaries’ needs like a glove is shopping around and comparing life insurance quotes from different insurance companies. Therefore, before you discuss the details of the policy with an insurance broker, you should find out if he is a captive agent. The captive agents usually have limited offers, as they are solely allowed to sell and promote their company’s products. Consequentially, these brokers will not be able to recommend or offer you a life insurance policy deal that can be considered the best bang for the buck.
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