0
How do you choose the right life insurance policy for yourself and your beneficiaries?
Wiki User
∙ 15y ago
Research all available forms of life insurance including term, whole, universal, variable, and others. If you have means or/and knowledge to invest your spare income in IRA or any other investment vehicle, don't go for anything else than term life insurance. Insurance companies are not considered to be the best money managers. Choose a company with a good rating by rating agencies like S&P and A.M Best. Any broker will provide you with this information. Finally, choose a premium that you will be able to afford and a contingent outcome value that will be meaningful to your beneficiaries. To check if the payout will be meaningful, ask the broker (or friend with a financial calculator) to discount the contingent outcome for several time frames at the potential inflation rate (e.g., 3.5%). This can also be calculated easily in MS Excel. I would recommend you do a basic study on life insurance. Educating yourself about life insurance will help you make an informed decision.
When choosing a policy you would need to consider personal factors like age, family history, how much life coverage your family would need in the event of your untimely death, and your current financial situation against your liabilities.
There are many online insurance quote providers to help you. I would recommend that you use the ones that are accredited by the Better Business Bureau. After filling a questionnaire, they will provide you with free quotes from multiple life insurance companies. This will help you get the best policy at the most affordable rates. Don't go for the cheapest-look for free riders, waiver options, etc. Also make sure you check the company's ratings. An A++ is the highest rating. Such ratings should be provided by A.M. Best or other such reliable rating services.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Which of types of beneficiaries in an insurance policy?
primary and secondary
What are types of beneficiaries of an insurance policy?
Primary and Secondary
How do you find out what happened to the life insurance policy your grandmother had when she died and your cousin and yourself were beneficiaries but never saw the money?
You should phone the insurance company and ask them about it; make sure you have the insurance policy number on hand, they will need to know.
What if 3 people are named beneficiaries on a life insurance policy?
If the insurance company accepted the policy, and unless there are specific provisions for dividing the benefit, it will be equally divided between the three beneficiaries.
Can a life insurance policy have more than 1 beneficiary?
Yes, you can have multiple primary beneficiaries, and contingent beneficiaries.
Who recieves the benefits or money from a life insurance policy upon the death of the insured?
The person, company or trust that is specified under "Beneficiaries" section in the insurance policy will receive the life insurance benefits. If the beneficiaries are more than one, the benefit is split according to policy details, or policy schedule pages.
Will your children get your life insurance benefits when you die?
The beneficiaries on your life insurance policy will receive the life insurance benefits. Please make sure your policy is updated with the correct beneficiaries. Many people forget to update their life insurance policy after divorce, or any other major life event and unfortunately the ex-husband or ex-wife receives the benefits. If all the beneficiaries named on the policy are deceased, then the benefit will go to the insured's estate (which may or may not go to the deceased children. The only way to ensure that the benefits are going to the intended person(s), is to update your insurance policy's beneficiaries.
Who receives life insurance money if no benificiary is named?
If no beneficiaries are named on a life insurance policy, or all named beneficiaries are deceased, then benefits will be paid to the insured's estate.
How do you find out if a life insurance policy was paid out?
How do I get information on a pay out on my fathers insurance policy made on July 2012, where all 5 siblings were named beneficiaries .
Do the beneficiaries in a life insurance policy change if the dad remarries?
Not automatically. The policy holder would have to make any changes they wanted to on the beneficiaries personally. Otherwise the staus quo holds true.
My sister may have collected on a life insurance policy that listed us both as beneficiaries what can i do?
Sue her and the life insurance company that paid her.
How can your grandmother change the beneficiaries on her current life insurance policies?
It is a very simple process, all she needs to do is contact the policy issuers or the insurance agency/agent that wrote the policy.
