• Suicide –insurance firms are keen with killing one’s self. More often than not, they would include in the terms and conditions the bond that specifies that the beneficiary will not receive anything from them if the plan holder will commit suicide anytime from the first two years of the policy even the insured person do not miss any payments. This is to protect the insurer from the risk of paying the whole face value of the term life should the plan holder kills himself. After the bond expires and he commits suicide, the insurance firm will just pay out the premiums he paid.
• Death due to war –war is man-made incident. Even a low cost life insurance will not cover such type of death due to apparent reason. It is very unlikely that you will purchase a plan in a carrier based at the other side of the world. If a war will break out in the country you are living in, your carrier will be affected as well just like everyone else. Even if they want to pay out the dependents, they might not have the means. In addition, there is a low chance that claiming for the death benefit will be your dependents’ primary concern.
• Aviation inclusion –if you will be riding in a private aircraft and it crashes, your carrier will not pay out the cash death benefit should you die. This is because you cannot deprive the insurers the privilege to think that the death is planned especially if the plan is still in its early years and you have been in serious financial disarray. Of course, this clause does not include policy holders who died in commercial aircraft crashes. Some carriers differ with their stand though to deaths caused by accidents concerning chartered planes so you must clear this with your insurance firm especially if you are a frequent flyer.
• Death because of hazardous doings –people who are into hazardous activities tend to get higher life insurance quote. Even if they get insured, their beneficiary will not receive a payment if they will meet their demise due to such doings. This is because the death may be likened to suicide. It can be counted as self-inflicted as one will have lesser probability to die if he would refrain from unleashing the daredevil in them. Most insurance differ with their views on what specific activities they consider dangerous so you should check in with your carrier. The common ones include sky-diving, auto racing and hang-gliding.
You might be surprised that the beneficiaries of policy holders who died from HIV will receive a death benefit. This is one of the biggest misconceptions of the public, that people who have the fatal disease can be insured. Although it is understandable that such individuals would certainly pay for higher premiums, they can ensure that their family will be covered upon their demise. There are a few factors though that the insurance firms would consider.
For an instance, they may require applicants with such condition to submit a certified document from the latter’s medical provider that they are indeed positive with the mentioned disease and that they are taking the necessary actions to address such problem. This means that HIV-positive persons who want to be insured must already be seeking medical attention prior to their application to the carriers. This will lengthen the time that the prospective policy owners can pay for the premiums even if they will not be able to outlive the term. They might not be subjected to medical test like in a term life insurance no medical exam.
You must clarify what other types of death that your carrier will not honor as it could differ from one insurance firm to another. This is important so that you can ensure that your family will stay covered. Otherwise, you would put your money into waste.
The primary purpose of term life insurance and other types of policies is to provide a cash death benefit to the dependents of the plan holder. You are paying the carriers for a certain period of time just so your family will not be troubled financially upon your demise. Knowing that they are covered may not assuage their grief for your loss but at least it will not add up to their plate. If there is a lump sum payment that will be given to them, they would not have to look for funds that they will use for your burial and for their everyday living expenses. However, there are certain types of death that your carrier will not honor. Below are some of them.
• Suicide –insurance firms are keen with killing one’s self. More often than not, they would include in the terms and conditions the bond that specifies that the beneficiary will not receive anything from them if the plan holder will commit suicide anytime from the first two years of the policy even the insured person do not miss any payments. This is to protect the insurer from the risk of paying the whole face value of the term life should the plan holder kills himself. After the bond expires and he commits suicide, the insurance firm will just pay out the premiums he paid.
• Death due to war –war is man-made incident. Even a low cost life insurance will not cover such type of death due to apparent reason. It is very unlikely that you will purchase a plan in a carrier based at the other side of the world. If a war will break out in the country you are living in, your carrier will be affected as well just like everyone else. Even if they want to pay out the dependents, they might not have the means. In addition, there is a low chance that claiming for the death benefit will be your dependents’ primary concern.
• Aviation inclusion –if you will be riding in a private aircraft and it crashes, your carrier will not pay out the cash death benefit should you die. This is because you cannot deprive the insurers the privilege to think that the death is planned especially if the plan is still in its early years and you have been in serious financial disarray. Of course, this clause does not include policy holders who died in commercial aircraft crashes. Some carriers differ with their stand though to deaths caused by accidents concerning chartered planes so you must clear this with your insurance firm especially if you are a frequent flyer.
• Death because of hazardous doings –people who are into hazardous activities tend to get higher life insurance quote. Even if they get insured, their beneficiary will not receive a payment if they will meet their demise due to such doings. This is because the death may be likened to suicide. It can be counted as self-inflicted as one will have lesser probability to die if he would refrain from unleashing the daredevil in them. Most insurance differ with their views on what specific activities they consider dangerous so you should check in with your carrier. The common ones include sky-diving, auto racing and hang-gliding.
You might be surprised that the beneficiaries of policy holders who died from HIV will receive a death benefit. This is one of the biggest misconceptions of the public, that people who have the fatal disease can be insured. Although it is understandable that such individuals would certainly pay for higher premiums, they can ensure that their family will be covered upon their demise. There are a few factors though that the insurance firms would consider.
For an instance, they may require applicants with such condition to submit a certified document from the latter’s medical provider that they are indeed positive with the mentioned disease and that they are taking the necessary actions to address such problem. This means that HIV-positive persons who want to be insured must already be seeking medical attention prior to their application to the carriers. This will lengthen the time that the prospective policy owners can pay for the premiums even if they will not be able to outlive the term. They might not be subjected to medical test like in a term life insurance no medical exam.
You must clarify what other types of death that your carrier will not honor as it could differ from one insurance firm to another. This is important so that you can ensure that your family will stay covered. Otherwise, you would put your money into waste.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on term life insurance for seniors and instant term life insurance quotes, visit his site today.
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