Mail order A few insurance companies sell through the mail. You mail a completed application directly to the company. The company usually does not have an agent in your hometown. The Internet A growing number of insurance companies are expanding their marketing and are starting to sell policies on the Web. All state laws and [...]
Premiums are the dollar amount you pay into a life insurance policy. Depending on your arrangement with the insurance company, you can pay premiums on a monthly basis or less often. All policies must contain a 3 -day grace period for late payments. This means if you are late paying your premium, your policy still stays in effect for 3 days, until you pay your premium. For group life insurance, employers can deduct your premiums with your permission from your paycheck. Insurers base your life insurance premium on several factors:
• Age
• Health problems
• Occupation
• Hobbies
• Habits
• Other circumstances that may reduce your life span, such as a bad driving record or participating in dangerous activities
• Expenses the company expects to pay regarding your coverage, such as sales charges, and underwriting and administration costs
• Interest the company expects to earn from investing your premiums
Term life and cash value life insuranceTerm and cash value insurance are the two basic types of life insurance that companies offer in various forms. Term insurance Term insurance gets its name because it protects you for a specific “term”—usually a year or a limited number of years. You have to pay more for it as you get older because your [...] |
What to do if a company turns you downIf a company turns you down for a policy, try another company. Companies use different methods and factors to decide whether or not to insure you. For example if you have high blood pressure that you control with medication, one company might reject you while another company may accept you. If you have a medical [...] |