Making the arrangements to settle your affairs following your death may be a topic that you avoid giving much thought. Yet, this is essential for protecting your family against the worst consequences that can follow your passing. While life insurance is an essential form of protection, limited information concerning life insurance can result in confusion when buying this vital form of protection.
Are There Time Limits For Life Insurance Policies?
It is important to understand that there are different types of life insurance policies. For those that decide to opt for a term life insurance policy, they will only be covered in the event that they die during the period of time stated in the policy. At the end of this time period, you will need to buy a new life insurance policy. For those that want to avoid the need to regularly shop for a policy or to limit the risk of losing this protection, you may want to opt for a whole life insurance policy. These policies will provide you with coverage for as long as you continue to make the premium payments for these policies. It should be noted that a term life policy may have lower premium costs, but the gaps in coverage that can be created by failing to renew these policies in time can leave your loved ones exposed.
Do All Life Insurance Policies Offer The Same Types Of Benefits?
While most life insurance policies will offer similar types of protection, there are several ways that you can customize these policies to provide the type of protection that you want for your family. For example, there are addendums that you can purchase that will provide compensation for lost income, special coverage to handle the debts that were incurred and numerous other types of protection. The types of addendums that are offered will vary, and this will lead to there being major benefits of reviewing the available addendums from multiple insurance companies.
Are There Any Instances Of Death That Are Not Covered?
Sadly, there can be instances where a person's death may not be covered under these policies. In particular, suicide is one of the more common reasons for a life insurance policy to be voided. Additionally, individuals can have these policy voided if they were dishonest on their initial application. For example, failing to list a serious illness on the application can result in future claims being denied. While being honest may increase the premium costs, it is necessary for ensuring that the policy will be honored when your loved ones need to file a claim.