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You cannot purchase insurance on someone without their knowledge and participation. The insured has to answer the underwriting questions in person and sign the application in the presence of the insurance agent. The insured does not have to be the policy owner or payer. The owner is the only person that can make changes to the policy including changing beneficiary, address, payment method, etc.

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โˆ™ 2011-09-04 20:44:33
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Q: Does the insured need to know about a life insurance policy?
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Related questions

Is life insurance an asset of the insured?

Yes, if the insured is also the policy owner.


Who is the principal in a life insurance contract?

The Insured of the policy is obviously the Principal in a life insurance contract.


What is contingent owner on life insurance policy?

The new owner of a life insurance policy if the original owner dies before the insured.


Who can legally change the beneficiary on a life insurance policy?

The Insured can change the beneficiary on a life insurance contract.


What is the difference between term and whole life insurance if there is any?

The difference between term life insurance and whole life insurance is that a term policy covers the insured for a "term of years" whereas a whole insurance policy covers the insured for the entire life period.


Who benefits from a life insurance policy?

The beneficiary benefits financially from the life insurance policy by receiving the proceeds of the policy. The beneficiary is the person(s) or entity who is designated by the insured person to receive the proceeds from the life insurance policy upon the death of the insured person. The insured person also benefits from knowing (peac eof mind) they have secured financial protection for the beneficiary in case the insured person dies.


There is no beneficiary on my mother's life insurance policy?

If no beneficiary is listed on a life insurance policy then the benefits are payable to the insured's estate. The beneficiary can be changed at any time prior to the death of the insured if this is the person's desire.


Does term life insurance pay out at the end?

Term life insurance is life insurance protection for a specific number of years. For example, if you buy 10 year level term life insurance and you die within 3 years of buying the policy, your beneficiary would receive the life insurance proceeds, usually free of federal income tax. However, if you stopped paying on your life insurance policy (policy lapse) and your coverage was not "In Force" when you died, there would be no pay-out. Also, if you cancel your term life insurance policy, there would be no pay out. The reasons term life insurance do not pay out at the end include the following: 1. The insured cancelled the policy. 2. The insured stopped paying the insurance premiums. 3. The insured outlived the term of the term life insurance policy, so the coverage expired. 4. The insured did not renewe coverage when the policy expired. 5. The insured did not tell their beneficiaries that they owned life insurance, and so no claim was ever made to get the proceeds from the life insurance policy. I hope that helps! Best of luck to you. 6. A term policy only pays off if the insured dies within the term.


Is there a tax on money received from life insurance if paid to the insured?

The only case where the insured can collect on their life insurance is with a whole life policy. In that instance any interest or dividends are taxable.


What is non-participating policy in life insurance?

A policy where the insured does not receive dividends due to non-participation.


Can you phone somebody about a paid up policy?

If you know the identity of the insurance company or the insurance agent that sold it to the insured, you can call. However, if you are not the insured, they will want to know the reason for your call and your authority to call on the insured's behalf. If the insured has died and you have reason to believe that you were the beneficiary of the policy, ask the insurer to send you a life insurance claim form. You will have to supply information about yourself, the name of the insured, and the policy number. Fill out the claim form and return it to the insurer. It may have to investigate to determine whether you are the correct recipient of policy benefits.


Does a will affect life insurance proceeds?

A will does not normally change a life insurance policy. The policy is a contract between the insured to pay a beneficiary. If the policy leaves the money to the estate, the will then controls the dispensation.


Is there any limit for accident benefit in life insurance?

In life insurance policy, you can have accidental coverage equal to the sum insured amount, by paying extra premia. By this way, you can avail accidental coverage policy in a life insurance policy.


What is incontestable period in life insurance?

The Incontestable Clause in a life insurance policy states that after the policy is In Force two years, the insurance company cannot void it because of misrepresentation or concealment by the insured in obtaining the policy.


Can you take out a life insurance policy on some one with out them knowing that you did?

No, you can not get life insurance without the insured's consent, unless it's for a minor.


What is the valuation of a life insurance policy for gift tax purposes?

For gift tax purposes, advisors regularly recommend that an insured who owns a policy in his own name transfer the policy to a new irrevocable life insurance trust (ILIT) to remove the policy from the insured's gross estate.


Is life insurance consideredpart of the estate?

If the insurance policy owner did not specify a beneficiary or the beneficiary is deceased, then the life insurance proceeds go to the insured's estate.


Person who is the holder of an insurance policy?

The person can be called Policy Holder,Insured, Life Assured as the case may be.


Can you explain life insurance in very simple terms?

Very basically, insurance is a contract (called an insurance policy) between one party (the insurance company) and another (the insured). In the case of life insurance, it is a life that is being insured. In return for the periodic payment of money (called a premium) to the insurance company, the insurance company agrees to pay a sum of money when the insured (whose life is insured) dies. The money is generally paid to the person (or sometimes an entity, such as a charity) that is designated in the insurance policy as the beneficiary. The beneficiary is designated by the insured when the insured buys the insurance but can usually be changed up until the time of death.


What if no beneficiary is named on a life insurance policy and they have a spouse what happens?

If an insured has a policy where there is no named beneficiary, or the named beneficiary is deceased, then the benefit will be paid to the insured's estate.


How do you find out who the beneficiary is on a life insurance policy?

AnswerCall the Insurance company, you must be the owner or insured, privacy laws and such.


What does life insurance units mean?

An insurance policy that pays a monetary benefit to the insured person's survivors after death.


Can you insure another person for life insurance?

Yes, one person can obtain a life insurance policy on another as long as the policy owner has an insurable, financial interest in the life of the insured.


How do we increase the amount on our policy for life insurance with your company?

You can opt for another policy as increase in amount of a life insurance policy is not allowed, though there is option for reduction in sum insured in few policies.


Can you collect life insurance on someone declared incompetenet?

Probably not unless the insurance company decides to allow it or it was a provision in the life insurance policy. Normally, people are not able to collect on their life insurance policy until the insured dies.