Life insurance is an extremely important component of your financial planning. That is because a life insurance plan can assist you to ensure that your family has a secure financial future even after you pass away.
This can include funeral or burial expenses, medical bills not paid for by family health insurance, estate settlement fees, and other unpaid responsibilities not covered by an employer’s health plan. If you are a working individual with a family, getting life insurance benefits could be one of the best decisions you can make.
If you purchase an affordable life insurance plan, then you should be aware that the plan features a variety of different benefits to suit the needs of individuals like you. One of these benefits is called the death benefit.
It is intended to pay for funeral expenses and some other costs that accrue throughout time. The death benefit is paid without requiring you to make monthly premium payments. However, if you do decide to take out this type of policy, then you should look into purchasing accelerated benefits.
Some life insurance companies offer life insurance benefits in the form of accelerated benefits. With accelerated benefits, you will get a choice of receiving the full amount upfront while others will only receive a certain portion.
There are people who opt to have the benefit begin immediately while others choose to have it remain at a level for a pre-determined period of time. These types of policies are offered by many of the same life insurance companies, so you should not encounter any difficultly obtaining them.
Most of these accelerated life insurance benefits are tax-free. The tax-free portion will be subject to income tax, while the portion that is taxable is generally treated as ordinary income. This means that the amount of the benefit will be reduced whenever you file your taxes.
In addition, the accelerated portion of the policy may not remain at a zero dollar’s value forever. If you are under the age of 65 and are a smoker, you may be required to take a medical questionnaire prior to being granted any life insurance benefits.
The medical questionnaire will request information regarding your health condition, smoking habit, past medical history, and any diseases or ailments you currently have. This information is taken from the answers to questions concerning your application.
If you are denied any type of life insurance benefits, you can challenge their decision at an appeals hearing. You must obtain a copy of the death certificate and your medical questionnaire from your local U.S. Department of Health.
You can send the completed questionnaire along with your application to the insurance company in question along with a copy of the death certificate. Life insurance companies use a point system to determine the level of coverage offer life insurance benefits to their employees.
This is based on the employee’s highest-paid position at the time of application. If you are a highly paid employee, the premiums will generally be higher than the lowest-paying position.
For example, if you were working as a janitor and received a highly paid position that would rank you at or near the top of the list for salary, the insurance company would likely offer life insurance benefits to you at a very high premium. Jump to Schuermaninsurance.com today to get started.
However, if you are a highly paid employee who happens to also be a certified nursing assistant, then you would probably qualify for lower premiums. If you are between jobs or are going through a life change because of a serious injury or illness, you can take advantage of an “accelerated benefits” life insurance policy.
An accelerated benefits policy offers you the choice to purchase life insurance at a discounted rate if you are employed for a certain period of time. For example, if you were employed as a truck driver for a period of time, you may be able to purchase a long-term care policy at a discounted rate.
Similarly, an individual who is between jobs or who becomes disabled and unable to work may be able to buy an accelerated benefits policy that provides benefits for a shorter period of time than the usual premiums.
Some life insurance policies provide for the option of choosing beneficiaries. If your beneficiary was not an intended beneficiary but has nevertheless come to be a part of your life insurance benefits, you may choose to name these beneficiaries.
The names you use will be those on your death benefit should you die during the period of time when the policy is in force. It is important to make sure that you have named the right people at the right time; people whom you want to have a beneficiary status in the event of your death and who will get the maximum benefit amount immediately.
This is especially important if the proceeds from the death benefit are to be paid out to a loved one or beneficiaries that are not intended beneficiaries.