Life Insurance Can Be a Lot More Complicated Than You Think!

Life insurance? Are we back on that topic again? Yes, we know that we’re going a little raincloud here but we have to keep up on the topic because it’s really that important. If you’re not thinking about life insurance right now, we don’t blame you. it’s a tough subject to think about, and it’s even tougher to take out a policy. It’s a confirmation of your own mortality, the realization that you’re not going to actually last forever as we often assume we will. When everything is going well, it can feel as if we’ll live forever, but nobody has done that yet. There’s no immortality clause in the great life contract, so you have to make sure that there’s a way for you to always be able to provide for the family that you love most.

Insurance is a tricky product, a system of risk management rules and regulations that have to count for a lot of details that we end up wishing didn’t have to be accounted for. We want to always have insurance there when we need it, but we really hate paying for it. That’s the trouble with insurance, but that’s something that we have to get used to having eventually.

Yet all is not well once you get your policy and start making the payments. Miss a payment, and you’ll have the policy cancelled — with no refunds, of course. If you end up trying to reinstate the policy, you could go through additional testing. After all, time has definitely changed, so you’re going to be open to having to get medical testing. If you have developed an illness in the time that the policy lapsed and was later reinstated, you may be denied the policy after all. Or you might have a waiting period that you need to go through before the policy becomes active. There are a lot of variables here, so you will need to run the specifics by the insurance company in particular.

Be aware that the insurance company won’t really work hard to find your heirs — unless you make that information clear to them. Not only can you leave behind contact information for your heirs, but you will also be able to get your heirs to do the same. Your insurance agent wants to make sure that every policy is serviced properly, and giving them the information they need in order to handle business will really play a role in whether or not your heirs receive the money that you want them to. Since you won’t be around to actually control the insurance company on behalf of your heirs, so you will need to really make sure that everything really is okay, to the best of your ability, before you die.

As a side note, this is another reason why having a good will makes sense. Keeping your will updated will give everyone the right idea about what you actually wanted to leave behind to your heirs aside from just the insurance money.

Moving back to the world of insurance, did you know that it’s a great tax shelter? It’s true — but your insurance company usually won’t tell you this. The benefits of a life insurance policy are tax-free, and the proceeds go to your loved ones tax-free as well. So if you’re thinking about ways to shield some of the money you have from the IRS< a life insurance policy is a good way to do it. However, you might want to make a move quickly — there have been talks that tax reform could block these shelters from people very fast!

Testing is also one of those around that people hate about life insurance, but the good news is that you don’t always have to deal with it. It’s all about the amount of coverage that you request and the type of coverage that you request. Term life insurance is very basic, which means that you can actually get away with not having too much information collected. However, you’re not going to get as much coverage at all — you’ll be very limited. In addition, if you’re over the age of 65, you’re not going to have this option — it’s pretty much all about the testing.

Don’t forget to actually comparison shop when you’re thinking about coverage. it’s tempting to think that you have to be in a hurry, but you really don’t. As much as we all would like you to get insurance as soon as possible — but you really don’t want to end up rushing and getting into a policy that really doesn’t truly meet all of your needs.

So now is the perfect time is make sure that you get things together — start today!