Every small or mid-size business typically has a key person or persons that are responsible for producing a majority of the revenue. Service businesses are typically dependent on a key person who regularly delivers revenue from their coveted client list. Should the business lose one or more key persons because of an unexpected death, the […]
In a life insurance policy, the amount payable in the event of death, as stated on the front page of the policy. Since the amount of insurance protection provided under a given policy is usually stated on the face or first page of the contract, the term is commonly used when referring to the death benefit in the contract.
Final expense insurance:
A life insurance policy purchased to cover the costs incurred during a last illness, funeral and burial costs, any debts, probate expenses, death taxes and any other taxes or obligations which must be paid in order to settle the estate of a decedent. Sometimes referred to as burial insurance.
Flat extra premium:
Premium added on top of the regular premium of a life insurance policy to cover added risk, typically that of high risk occupations or activities (e.g. flying an aircraft). The insurance company adds a flat extra fee per thousand dollars of death benefit. An example of this would be a pilot paying and extra $2 – $3 per thousand dollars of benefit. In this example, a pilot taking out a $1 million policy would pay an extra $2,000 – $3,000, over and above the normal premium.
Free look period:
A specified period of time in which the insured can keep the policy for review and, if then decides to return the policy, a full refund is given. The free-look period varies by company and state, so make sure to check the free-look terms when you receive your policy.
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Many people are under the impression that you cannot buy life insurance for marijuana users. In fact, many applicants lie about their usage and then are denied coverage, not because they use marijuana, but because they lied about it. Insurance companies refer to this as misrepresentation. The truth of the matter is using marijuana does […]
When we consider using life insurance as an investment, there are as many people in favor of it as there are opposed. Certainly, financial gurus like Dave Ramsey and Suze Orman are against life insurance for any reason other than a death benefit, but remember, while speaking out against most life insurance products, they are […]