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Life Insurance

~5000 answered questions
Parent Category: Insurance
Life insurance refers to a contract between the insured and the insurer, where the latter agrees to pay a beneficiary a specific amount of money upon the death of the insured.
Premium Payments No, Under no circumstances may an insurer or agent thereof intentionally "keep" your unearned premium payment. This would be a violation of the agents fuduciary obligations to the insured. However, if there was an outstanding balance due on your previous policy, then they are allowe…
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Insurance Policy fees Yes, most insurance contracts have a state approved associated policy fee and in the USA several other government mandated fees and taxes imposed by law that the insuring company must collect for your state. State mandated fees include state run vehicle anti theft programs, va…
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%REPLIES% Answer I don't know, but, the GAP policy I had used the formula: Outstanding loan balance minus cash value as the beginning of it's calculation. Then it went out to subtract refunds of extended warranties, etc. It really sounds like it is doing the same thing as "regular" insurance…
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Insurance premiums are calculated for the year. If you cancel your policy refunds are usually issued retroactively. So if you cancel your insurance 6 months into your policy, you wil be refunded for the remaining 6 months. It is usually calculated to a daily value, so you will get a refund for the r…
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As old as your state says you have to be to own a vehicle and / or drivers license. Check state specific laws and post the answer here for others in the same situation.
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Contact your state board of insurance and there should be some forms to fill out and WHY you need this information. Generally if you have been in an accident with these people they will help you. Don't forget that if you have been in an accident and they gave you false or fraudelent information to c…
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The cosigner if there is one is first to be responsible for the balance of the loan. After that the mom's estate meaning who ever is seeing to her affairs. This can be the relatives or the actual State government.   If there was a will, the lender has 6 months to file a judgment in the Surr…
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In answer to Nicks question, This is a serious issue. It does not fall along the lines of vanishing premium which is generally when the dividends (which are not guaranteed) are used to pay off the annual premium. This can happen and is legit altho many policies were sold that way and poliucy holders…
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Life insurance is regulated by the various states, not by the federal government. It is deemed to be contrary to public interest to encourage suicide by making insurance proceeds available to those who see no way out of their financial difficulties. Therefore, insurance companies usually prohibit cl…
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The "bankruptcy" of an insurance company is referred to as "insolvency". It is roughly defined as the financial inability to pay claims as they accrue. As a condition of becoming authorized (licensed) to transact insurance business in the company's state of domicile, it is required to pay a portion…
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The cash value in any life insurance policy does not belong to the owner of the policy. The cash value is an asset belonging to the insurance company which they will use to pay the claim, which will surely come due, when the insured finally dies. Now if the owner of the policy would relieve the ins…
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Insuring someone Basically you can insure anyone with whom you have an insurable interest. meaning those on whom you have a financial or physical dependency a legal symbioses or interest in and with their permission and knowledge. If the loss of the individual would cause financial or certain other …
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But ... here's the issue: Insurance companies may be reluctant to issue a policy. There are, however, companies that WILL do so! The question is, Can you afford the premiums? What would cost you $30 to $80 may end up costing you $900 to $2000 or more. So, it depends on the situation. Try calling som…
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This is a good question. The answer depends on what your are making the beneficiary designation for. That is, an estate, trust, life insurance policy, IRA or retirement account, bank account. Also, what is the total amount of your assets, are you in a community property state? Finally, what do you w…
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Death benefits are usually not subject to federal income tax. There are exceptions, though, such as, if the IRS deems your insurance policy to be an investment in disguise. Your insurance agent or accountant should be able to give you guidance.
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I am sorry for you and your mother's loss. I hope you are doing okay.Take a look at the life insurance policy itself. There should be a phome number and address of the life insurance company stated somewhere on the policy.You can contact the life insurance company and ask who is handling the servici…
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Adjustable whole life insuranceAdjustable whole life insurance allows you to vary your coverage as your insurance needs change. You normally choose the face amount you need and the premium you want to pay, and the company calculates a plan that provides coverage for your request. The result could be…
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If you have a question about the validity of the offer you can contact the department of insurance in your state and ask if they have received any complaints regarding this insurance company. Also, if you have an attorney you can have them review the offer and verify its validity.   It certai…
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There is a probationary period from the date that the policy is sold and accepted. If the applicant lied on the insurance form and dies during that period, the insurance company investigates (they always do, to my knowledge, when there is a death), and finds the lie, the company is obligated to pay …
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Hi,I don't think there's an easy answer to this question. As I understand it, surrender charges vary widely among insurance companies and might even change over the life of the policy. You'll need to read the fine print of your policy and/or speak to your agent.Click here for more about life insuran…
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Beneficiary's obligation The beneficiary has no legal obligation to pay the bills solely in the name of the insured.
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Life insurance trust A life insurance trust is used to remove the assets and death benefit of the life insurance policy out of the insured's estate for estate tax purposes. If the insured were to remain the owner of the policy, the policy procedes would be estate taxable at the time of death. Thi…
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_____________________________________________________________________________________________________ A life insurance policy becomes payable only when the person who is designated as the insured dies. The beneficiary is the person, persons or entity to whom or to which proceeds are payable upon…
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Yes, as a matter of fact, you can! Assuming you've found a qualified broker that's willing and able to work with you "long distance," you'd simply contact him or her with your request. The broker will walk you through the rest, and all arrangements can be made through telephone and email. IMHO, po…
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%DETAILS% Answer No. In fact, the benefit will usually grow at interest until the insurance company can locate a beneficiary. One thing that some people don't consider is the fact that often an insured dies and no one knows he had insurance. Since no claim is made, the insurance either assum…
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Hi Reb,The primary beneficiary is named within the policy document. The primary beneficiary may or may not be the father.If the primary beneficiary is deceased, then check the policy for a named contingent beneficiary.If there are no named beneficiaries living, then the policy proceeds become part o…
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One rule of thumb is to buy an amount equal to five to seven times your annual gross income. But the real question is how much your family will need when you're gone. That depends a lot on the family and what stage of life you're at.   When you plan to buy a life insurance policy, the factors…
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Term life insurance is the simplest, and usually the cheapest, form of life insurance. Term life insurance provides protection for a specific period of time. It pays a benefit only if you die during the term. If you are living the policy expires without value. It is sometimes called temporary life …
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Decreasing term life insurance is a variety of term insurance in which the death benefit decreases on a scheduled basis. One of the features of term insurance is that, at least when compared to permanent insurance (whole-life), it is relatively inexpensive. In the early years of a decreasing term p…
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Mortgage insurance is mortgage insurance, usually sold to the applicant at the closing of the purchase of a house. At the title company. It has nothing to do with life insurance, per se, because upon death of the insured, the LOAN is paid off. The survivor RECEIVED NO CHECK. Life insurance, on the …
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%REPLIES% Answer Variable life insurance differs from whole life insurance and universal life insurance in that policy owners direct the distribution of their premium payments among several different accounts or funds rather than of the company's choosing. Typical account choices are: …
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Variable universal life insurance combines the flexibility of a universal life insurance with the investment account features of a variable life insurance. Like variable life insurance, variable universal is considered a security. It can only be sold by agents who have passed the National Associati…
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Universal life insurance is a type of whole life insurance. Universal life differs from other whole life policies in that it allows the policy owner to vary, with limitations, the amount and timing of premium payments and the death benefit. These changes can be made while the policy is in effect. …
Popularity: 235
%REPLIES% Answer Before it was made illegal, some insurance agents used a sales pitch for universal life insurance that suggested the premiums could vanish. The pitch went like this: You start out by putting a large, lump sum into the universal life policy. The policy has the poten…
Popularity: 220
Last survivor life insurance, or survivorship life insurance, is a type of joint whole life insurance designed mainly for married couples.Federal estate taxes are not collected on property left to a spouse, but when the surviving spouse dies, estate taxes are due and can be very high. A last survivo…
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Whole life insurance gives you lifetime coverage at a premium rate that does not increase with your age after you buy. In the early years of the policy, when you're a low risk, you'll pay more in annual premiums than it costs to insure you. As you become a higher risk at an older age, the level pre…
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Participating life insurance is what a policy is called when the agent gives the pitch that sounds like "and when the company makes enough surplus money, we will return (or share) some of that money with you in the form of dividends". I once saw a check for about $1.73 that a friend received, and t…
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Answer Permanent life insurance is another name for whole life insurance. It provides permanent, lifelong protection. This distinguishes it from term life insurance. Click here for more about permanent life insurance including its advantages and disadvantages. A permanent life insurance policy …
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The idea to save on premiums by switching over to various term life insurance companies is totally childish and counter productive. Continuation with a single term insurance service provider is what is advised. With each switch over, there is the question of premium acceleration as age increases, fo…
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Shop around to obtain quotes from many different life insurance companies. Prices vary wildly among competing life insurance companies, plus they all rate a little differently depending upon your weight, personal health history, family health history, financial need and dangerous hobbies. Each of th…
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You should have your mother leave the insurance to a trust and then you or your family as trustee, then the IRS cannot get to the money since it will not be yours. Additionally you may receive income from the trust. Your family could "spoon feed" you. You should consult an ESTATE PLANNING attorney …
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Sure it can, provided the court has sufficient proof to esablish doing so would be in everyone, particularly the children's best interest.   This might be possible, but if so it's done very, very rarely. I have never heard of it. A court might pressure the policy owner to change the beneficia…
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%DETAILS% Answer When your policy was issued, a lot of things were different. First, you were 30 years younger and Second (and more importantly here) interest rates were higher than they are today. The only thing any of us knows about the future is that it will be different than today. When i…
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%DETAILS% Answer This is why people need to have an agent they can talk to and trust. The agent can answer this question immediately. If you own a life policy that has the word "Accident" or "Accidental" in it's name, that means it will ONLY pay if you die in an accident. The much smaller ba…
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Yes you can. To get insurance, insurance companies, want to see an "insurable interest." Since he is the father of your child, you have an insurable interest on him.
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Many cancer patients can, indeed, find affordable life insurance coverage. How? The key is finding a knowledgeable broker with experience in placing tough cases. Yes, you can get a "graded life" policy for up to $50,000. You maybe able to get more than one such policy. This means that the company on…
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No. How can they prove that nothing was received, if nothing was received? The person who was supposed to pay for the policy should have cancelled checks or bank statements indicating that premiums were paid.
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All you need is to contact Conseco - Why is finding the agent relevant?US Companies sell ALL over the world... The question is if TAIWAN allows them to sell in THEIR country. Even if they sold you a policy in violation of Taiwanese Law - I'm sure they will still honor their contract. Contact Conseco…
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Typically it is called "Net Cash Surrender Value". This is the amount of cash value in the policy accumulation account minus any outstanding loans etc. But it is typically referred to as "Net surrender Value" or "Net Cash Surrender Value". Get a good agent and he can explain.
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Normally, when one buys an insurance policy a primary beneficiary is designated, as is a "contingent" beneficiary. The latter is second in line to get the proceeds if the primary beneficiary predeceases the insured and the insured does not name a new primary beneficiary. Another circumstance for the…
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%DETAILS% Answer Contact the Insurance Commissioner, they probably had the company taken over by another company.
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If you are not working with an agent for the company that issued the policy, you need to locate one. An agent can effectively explain what your options are. What you can change about the policy, and if any changes are possible depends on what you want to change, and who you are in relation to the po…
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The coroner or the State/Count Medical Examiner would make the initial determination. This is done at the local level.COD may also be declared as undetermined, in which case the local authorities may or may not bring in outside help in order to assist in this determination.
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Beneficiaries You need to contact the insurance company to find out. Unfortunately, there is no easy way to find out what insurance company, if any, the person was using. But here are a few hints: If you have access to the person's records, look through the files for a copy of the policy or…
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Money 101 life insurance There are many companies selling life insurance on the Web, that will give free quotes and advice. The key to buying is to shop by price and by the company's rating. Several agencies, including Standard & Poor's and A.M. Best, rate insurers on their claims-paying a…
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Benefits may be payable if the insured commits suicide, but it depends upon the terms of the policy. Because the contract terms govern the conditions upon which the insurer is obliged to pay, the beneficiaries have no greater rights to payment than those set forth in the policy, and are subject to a…
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A drug overdose does not break a life insurance policy.
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Life InsuranceWhy would you wait? Notify them! I would think wifey would know that Hubby deceased already.
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An insurance company makes a decision to issue coverage based on the answers on the application, the company's underwriting guidelines and medical information they may receive from an attending physician's report or even blood and urine samples and test results. If an applicant or insured person mak…
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No   No is correct. Let's look at it this way. Suppose today you buy a term policy for $100,000 and pay the full years premium up front of $300. Exactly 6 months to the date of issue you die, your beneficiary would receive $100,150 which is inclusive of the $100,000 death benefit plus $150 (1…
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Not usually, though I can't say that it is impossible. Life insurance is not regulated like car and home so one particular company could promise you that.Generally the cash value is if the insured cashes in the policy and the face amount is paid to the beneficiary when the insured dies.I was a life …
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They are usually not subject to Income Taxes, but may be subject to Estate Taxes. It would be VERY unusual for income taxes to be due. Federal estate taxes are not an issue if you are of modest means, but your state may have estate, inheritance, or death taxes that could impact most anyone.
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Hi David,Redeeming cash can be accomplished through a simple phone call to the policyholder service department of your company. It can be done as soon as cash has accumulated, but must be done in full recognition of the impact the loss of cash will have on both the cash account and the survivor bene…
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Generally, if the beneficiary is deceased, the proceeds go to the contingent beneficiary, or if none, to the estate of the insured. An attorney must be consulted to direct you on how to handle this in your state.   It depends on whether the beneficiary predeceased the insured. If the benefici…
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As with all life policies, when the insurance company is notified of the death of the insured, they will make every effort to locate the beneficiaries based on what information has been supplied to them by the owner/insured of the policy. However, if they are unable to locate a beneficiary, they ar…
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Can you show an insurable interest? That is, do you have an economic loss if she dies? Estate Taxes?There are specialty companies that do this.   The insurance company is going to call her. Won't she become curious when they start poking her with needles to draw blood and ask all those questi…
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You have to check the illustration or cash value table. Maybe 3 years. For more info see www.steveshorr.com/life.htm
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Not with a properly named beneficiary.If the beneficiary is the owner can the life insurance policy be attached by a lien? If the person is deceased than you now have the money. I guess it depends on what entity is putting a lien on. Certainly the IRS can do anything they wish. I don't think any oth…
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There are always Guaranteed Issue Policies, limited benefits the first 3 years.Contact an agent, complete an application and see where it goes.
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Both whole life and universal life have cash values. For Whole Life -Picture a rectangle/box with a line from the bottom left corner going up to the top right corner. Everything under the line is your cash value or savings in your life insurance. The entire box is equal to your coverage amount. When…
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If you feel that someone has fraudulently placed an insurance policy on you, please contact the Medical Information Bureau by going to www.mib.com. They have a fraud investigation department. The only way someone can have a life insurance policy on you is if you signed an application giving your …
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Did the insured know he had any issues with cancer? For more info. see http://www.steveshorr.com/wrong.or.imcopmplet.info..htm
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%FOLLOWUPS% hopefully the beneficiary had a trust or a will
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Because the Insurance Company doesn't want to be in the middle of it.interpleader n. the procedure when two parties are involved in a lawsuit over the right to collect a debt from a third party, who admits the money is owed but does not know which person to pay. The debtor deposits the funds with th…
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You are very entitled. But they do not have to tell any information about the policy, without consent of the insured.Yes, if the insured person has passed and you are the beneficiary, you should call the insurance company and go through their steps to claim the benefit. It is the responsibility of s…
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Yes,life insurance can be obtained by any one for anyone.Its kinda sad.
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Yes, insurance can be taken out on anyone.   NO, NO, NO and NO! It is not legal to take out life insurance on someone else, unaware and who has not authorized such for the purpose of naming youself as the payoff collector or benneficiary rather.However that does not mean people do not do it e…
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Traditional life insurance is not available for people with terminal illness. In some cases, a Graded Death Benefit life insurance policy may be available. With this type of policy, if the insured dies during the first few years, the insurance company will only pay back the premiums paid plus inter…
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%DETAILS% It isn't a problem with most insurance companies.   The life insurance company is stuck with the policy and must pay the full claim, as long as the applicant did not lie during the application process.By the way, smokers should always tell the truth, when applying for life insura…
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The problem is a minor can't sign a binding contract, so when the company pays off, his signature doesn't agree that he's been paid. The best thing to do is make a trust or leave the $$$ to a guardian.
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Only the owner of the policy may access the cash. Only the named beneficiaries may receive the death proceeds. This is not to say that a spouse would not go after a cash value in a divorce. I am not sure what the legal issues would be at that point...but a new spouse? How could she have any claim? B…
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Possibly. Depending on the conditions of your policy, the claim may be denied or only paid a rediculously small fraction such as 8-10% of the premium value. Any part of an application for life insurance that can be proven to be a lie can void the policy. Companies that I know of will refund prem…
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As long as the questions were answered honestly IMMEDIATELY
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Yes, as long as the policy is still in force. If the insured or owner of the policy is able to make changes to the policy (i.e. sign change form), it would probably be wise to have whoever the payor will be added to the policy. While your at it, make sure all the beneficaries (Primary and secondary)…
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It depends on WHY you want the coverage.Do you have children? How old are they?What about your Mortagage?Do you have Estate Tax Issues?Who will be financially impacted by your death? For how long?If you buy a 30 year policy - you can let it cancel anytime a premium is due.   Do you think term…
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Colonial Penn is always the best company to turn to when you have someone who is ill. I'm an independent life insurance broker specializing in final expense policies issued without a medical exam, but using the Medical Information Bureau, prescription drug check and telephone interview. Once you are…
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Yes.   If he agrees to it and someone pays the premium. It's an excellent procedure (opinion).
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Try reviewing this article http://moneycentral.msn.com/content/Insurance/Insureyourlife/P35421.aspalso visit www.steveshorr.com/life.htm
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Since you paid it with after tax $$$ any money you receive would not be taxable, UNTIL it's more than what you paid into it. In that case, it might be better to take loans.
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%DETAILS% Answer My uncle was beneficiary on his mother's policy and has since passed away leaving no named beneficiary, so do the proceeds get distributed pursuant to the will? Yes Otherwise, check the rules for your state on "intestate" sucession. Answer This situation is wh…
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Yes. However, who will be the owner of the policy? The husband would have to sign the application and take the exams.
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Generally no. The insured must generally sign the application and take a physical. There are a FEW speciality policies that might do this. Here's ONE. http://www.piu.org/pdf/Confidential%20Life%20501.pdf It won't do spouses though.For more info see www.SteveShorr.com/life.htmOf course he can take he…
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Check out these linksArticle on Money Central http://moneycentral.msn.com/content/Insurance/Insureyourlife/P35421.aspMIB Policy Locator http://www.mib.com/html/lost-life-insurance.htmlInsurance Institute Suggestions http://www.iii.org/individuals/life/help/locatelost/for more info see www.steveshorr…
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Ask them. Sounds simple but there is no one central repository of insurance policy information in the U.S.So if the policy buyer didn't tell you about the policy then it did them no good to buy it because unless you know about it then your heirs can't make a claim even if the policy was good.
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I doubt it. Have you been paying the interest? Call the company and see.
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Answer Without knowing your circumstances, wants, needs and desires - the question can't be answered. I would suggest that you get proposals for both and then make a decesion. Answer I agree with the previous person's answer. Generally speaking, Variable has a higher upside potential but no …
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In my opinion, that's a "dead end" question. What medical issues do you have? Then I as an Agent can help you get the coverage you need. Even if they don't specifically ask about your condition if you have something - the company probably should know about it. Click here for information on what hap…
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No. If you have two policies from the same company, the agent made more commission than would otherwise on a single policy.There are however very good reasons to have more than one policy. Policy for the family and another for a business.The second policy's insurance value can be added to the first …
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Look in the policy for the table of cash values. There may be TWO columns. Cash and Surrender value. If you give up the policy, you get the surrender amount. If you don't have that table in your policy or your policy is based on current interest rates - then you need to contact your Insurance Compa…
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