Life Insurance 101

• Life Insurance Basics

  If you have ever lost someone you are close to, you know how hard that it is. It is an emotional blow, and it takes a long time to recover. The last thing anyone wants to worry about when that happens is the state of their finances.

• If you have dependents you want to know that they are going to be okay after you die. The best way to do this is by setting up a life insurance policy. Life insurance is basically a deal between you and the insurance company regarding the timeline of your death. If you die before the life insurance matures, your dependents will collect the money and they can use it to pay for your funeral expenses and other bills while they get back on their feet.

• One of the things you should know is that there are some deaths that aren’t covered. For example, if you commit suicide, the insurance company is going to consider your policy null and void and they will be able to keep the money. Your family won’t get anything. It is very rare to find a company that will cover death by suicide. In addition to suicide, if you die while doing something that the life insurance company felt was to risky, such as training to become a rodeo clown, they could also deny paying your beneficiaries. If you enjoy extreme sports and hobbies you are most likely going to pay a higher rate and will have to look a little harder to find a life insurance company that will cover you. Even then, you’ll have to read the fine print.

• The younger you are, the easier it is going to be for you find life insurance. The companies that handle life insurance love young applicants. They really love young applicants who are healthy and don’t come from a family with health problems. Women, particularly those that have children, usually have an easier time getting life insurance than men, this is because statistically women live longer than men, and mothers tend to be very careful, and don’t often do risky things that could put their lives in danger.

• You are going to want to make it very clear how the money from your life insurance policy is going to be handled. The easiest way to do this is with the involvement of an attorney. They will be able to make sure that, in the event of your death, that the paper work is filled out properly and that the life insurance check goes to the right person. The other advantage to using a lawyer is that if the insurance company balks about paying the life insurance, the lawyer can quickly take action to expedite the process.