Frequently Asked Questions

Can I have more than one life insurance policy?  (back to top)

What happens if I don't make the required premiums?  (back to top) 
 

Typically, you will have a 30 or 31-day grace period. If you pay within this time frame, you won't be charged additional interest. If you don't pay within the grace period, your policy will lapse. With a permanent policy; however, you can usually draw from the cash value to continue your premium payments. This will lower the cash value of the policy, though.
If you are unable to pay because you have become disabled, and you elected a "waiver of premium" provision or rider on your policy, you do not have to pay premiums for the duration of your disability.

What if my policy lapses?  (back to top)

If a policy lapses, most companies allow you a grace period in which to pay your premium and continue the policy. If you have enough cash value built up in your policy, most companies will use part of the cash values to pay the premium due. If you have a term policy and don't pay within the grace period, your policy will lapse and simply end.

Do I need life insurance if I'm a young, single person?  (back to top)

Are there cases in which I don't have to take a medical exam to buy life insurance?  (back to top)

Group policies don't require medical exams. Unless you are buying Supplemental Group Life, or asking for a higher amount than the standard coverage level for the policy, you don't have to provide medical documents. Most group life insurance enrollments are held annually through an employer (usually larger corporations offer group health benefits).


What do insurance companies look for in the medical exams?  (back to top)

For individual life purchases, you will be classified based on height, weight, nicotine use and other health factors. Your health status will determine what rate class category you fit in, so even if you have some health problems, you could be covered. Your agent or insurance company should explain what criteria determined the class into which you fall.
If you don't qualify for their best rate today, you might be able to improve your rate category if certain health factors improve. For example, a 35-year old woman buys a life insurance policy. She is 50 pounds overweight, has high blood pressure, and is trying to quit smoking. Two years later, her policy is still in force and she has lost 50 pounds, her blood pressure is normal, and she has been nicotine-free for a year. She could talk with her agent about a revision in medical underwriting on her policy, possibly reducing her rates.
If the medical evaluation showed a condition for which she would be classified into a higher rate category, she could remain at her current rate. The insurance company would not reclassify her into a higher rate bracket.

Can I buy a policy on someone else?  (back to top)

Can I buy a policy on someone else without them knowing about it? 
(back to top)

Can I name anyone I want as my beneficiary?  (back to top)

Do life insurance policies ever cancel each other out? If I have a credit life policy and a whole life policy, will one not pay out?  (back to top)