They say there are no stupid questions, but there sure are some interesting ones. Especially when it comes to life insurance. Here are a few.
Can I buy life insurance on someone without them knowing it?
In some cases that would be difficult, particularly if a health exam is required. But even without a physical exam, you can’t buy an insurance policy on someone without their consent.
Can I buy life insurance on someone I don’t know?
The question itself makes one wonder what they were planning. The fact is you can’t legally buy a life insurance policy on someone you don’t know. This is because you must have what is called an “insurable interest” in the person. This would mean that you would somehow be personally impacted by their death. This generally means a spouse, parent, close relative or even a business partner.
Does an accidental death pay double?
Some policies include an accidental death benefit, others offer such a benefit for an additional fee. If a life insurance policy includes an accidental death rider, it will pay a multiple of the original face value. It could be two, three, five or more times the face value. All life insurance policies will at least pay face value in case of an accidental death.
Is it possible a lapsed life insurance policy to have value?
It is possible a policy that appears to have no value could still be in force. Some policies that appear to have lapsed for non-payment may have built up cash value, paid up insurance or had a policy loan feature that kept it in force. Should you find any life insurance policy among the papers of a deceased, have the issuing company run a policy status on that policy. This can determine if the policy is in force or has value.
Do I have to give up a dangerous hobby to get life insurance?
You don’t necessarily have to give up rock climbing, skydiving or race car driving to get life insurance, but you should be prepared to pay higher rates. High risk activities often translate into higher premiums.
If you have any questions about life insurance, please feel free to contact us. We can review any current policies you have and help you determine an appropriate amount of life insurance for this stage of your life. Because we are independent agents, we can do the shopping for you. Contact us today to get started.