Life Insurance is an insurance policy that pays a death benefit to beneficiaries or the owner of the policy, if the insured dies. It is important that the beneficiaries designated in the life insurance policy receive death benefit TAX FREE. In return for this protection, the owner of the policy pays premiums to the insurance company.
Types of Life Insurance
There are many life insurance plans you can choose from, but basically, Life insurance may be for a certain period of time (Term Life Insurance) and for life (Permanent or Whole Life Insurance).
What type of life insurance to select depends on your circumstances and insurance needs: how much you have in the way of assets; how much debt you have; whether or not your family could make ends meet or maintain their living standards without your income; how soon you will retire; how much you can afford to spend on insurance payments.
Since death benefit goes to the beneficiary tax free, life insurance may be used to transfer your estate to your heirs with minimum tax expenses. Also, life insurance may give you access to the cash value in your policy if you need it.
◊ Term Life Insurance offers cost-effective way to cover short-term needs. It is temporary, flexible and affordable protection for you, your family and/or your business, best protection for your mortgage. Premiums are guaranteed level for a given period of time. At the end of that period, the policy either renews at a higher premium for the next payment period or it terminates. Most term plans can be switched to permanent protection to cover your long term needs. Read more >>
◊ Permanent (Whole) Life Insurance provides protection for the entire life of the insured: from the date when the policy is issued until the insured dies. Permanent policies are usually designed with guaranteed level premiums for the lifetime of the policy (Illustration). Some permanent insurance plans let you pay for a limited time and then you don't have to pay any more. Permanent (Whole) Life Insurance policy may build up a Cash Surrender Value (CSV), which makes this policy an attractive investment tool. Read more>>
◊ Participating Whole Life Insurance is a permanent life insurance plan that provides you with permanent lifetime insurance protection and which is also eligible to receive dividend payments. The amount of coverage and the premiums are guaranteed for life. Dividends can be used to buy more coverage, reduce your annual premium or earn interest, or you can take them in cash. Dividends are not guaranteed. Read more>>
◊ Universal Life Insurance has the insurance and the investment elements, which have a symbiotic relationship: the investments may pay for the insurance coverage, and existence of the insurance elements permits the investment growth to accrue within a tax-deferred environment. The investment in the policy may be withdrawn and provide additional income or the value of your investment may be added to the death benefit and will go to the assigned beneficiary without tax. Read more>>
Life insurance premiums
Life insurance premiums depend on the insured's gender, health, medical history, smoker/non-smoker status, coverage amount, insurance plan and insured's age, which reflects unfavorable statistics for older people.
The chart below shows how monthly premiums change during existence of the policy for different kinds of insurance: T10, T20 and permanent life insurance (female, 35 years old, non-smoker, death benefit - $200,000).
Application for Life Insurance
You can apply for Traditional Life Insurance, Non-Medical Life insurance and Guaranteed Issue Life Insurance.
Traditional Life Insurance
This life insurance policy may be issued for the applicants who are from 0 to 85 years old at the moment of application for the policy. Amount of coverage may be from $10,000 to $20,000,000.
These plans are medically underwritten at the time of application: you have to complete a detailed medial questionnaire, have some medical tests if required (it depends on your age and amount of coverage). Your application and medical information will be reviewed and the company will make decision (approved, rated or not approved ).
There is a variety of plans you can choose from: Term, Whole life, Participating Whole life, Universal life insurance. We can help you determine the life insurance plan which is right for you. Please contact us for more information.
Non-Medical Life insurance
Non-medical plans do not require medical tests at the time of application. However, you have to complete a simplified medical questionnaire to determine your eligibility for this life insurance plan. If you are not sure how to answer to any question, you need to consult your doctor. This plan is medically underwritten at the time of claim: your medical medical questionnaire will be verified against your medical records to check your eligibility.
Insurance companies issue term and whole life non-medical life insurance plans. Amount of coverage depends on the plan and the applicant's age and usually does not exceed $500,000.
Please Click here to get more information and free instant quote for non-medical life insurance offered by Humania Assurance.
Guaranteed Issue Life Insurance
When you apply for Guaranteed Issue Life Insurance,
no health questions are asked and no medical exam is required. Your
application will be accepted regardless of your health status, however,
there will be a two-year deferral period. .
It is Permanent life insurance, and applicants up to 85 year old can apply for this plan. Amount of coverage usually is no more than $25,000.
Revised: May 07, 2020.