Beneficiaries Of Lost Life Insurance Policies Can Really Use The Money

It is just a shame that money owed to some beneficiaries of lost insurance policies never get to them during their lifetimes. I spoke with some representatives of insurance companies, to see how many, on a daily basis, get phone calls from the public, asking them to search their database for insurance policies. I had one company say 100’s a day. I had another company tell me 1000’s a day and they even elaborated that it was a total waste of the consumer’s time as well as resources and man power of his company. He said that they will never find it if they do not know which company their loved one bought it from. Well, I took this opportunity to explain the need of a central life insurance database to him; telling him that it is a safe and a much needed service. He listened to me for around 10 minutes while I explained the many benefits a central database could have to his insurance customers. Even with him telling me that it was a waste of time for anyone calling his company, he did not want anything to do with the thought of a database. He flatly told me that he did not feel a database was a benefit to his customers, I was surprised.

Now as a insurance agent myself, I took offense to this comment. Isn’t it the responsibility of the agent (regardless of the company they work for) to do what is best for the customer? Don’t you think that registering anyone with life insurance on a central database so their beneficiaries can locate the company name is the best thing for the customer? Well I do. Not only does a database allow an individual to register the company name they have insurance with, it allows the beneficiary with certainty to find the policy you have in place. All an individual would need, to find a life insurance policy, is the company name. Since there are over 2000 life insurance companies in the United States alone, having the company name on a central database will solve a major problem that gets recognized only when it is too late; lost life insurance policies. Hopefully consumers of life insurance will also recognize the need and buy it from agents and agencies that offer to register on a free central database. It is definitely something to think about.

Term Life Insurance Plans – What You Can Expect

In your efforts to seek the best life insurance plan for your family’s needs, you have probably come across a few term life insurance plans.

Here are a few things you can expect from most of the term life plans being offered these days.

First off, term life insurance is different from permanent. Primarily, it is only good for a certain period of time or a “term”; generally the term is from one year to thirty years.

All term life insurance plans must be renewed at the end of each term and the policy carries no actual cash value.

The death benefit reverts to the beneficiary, which pays a specified amount in the event of the death of the insured, in accordance with the particular plan.

With term life one of the main bonuses you can look forward to is the large quantity of affordable plans available, so you’re bound to find a plan that is ideal for your needs, although you should expect to shop around.

In fact get a number of quotes. As long as you “mix it up” and do your due diligence, you will certainly find the right plan for you. So always shop around and evaluate all of the info with care.

Be Sure To Get Multiple Quotes

If you go online, you’ll notice a bunch of articles that you can read that will answer some of your questions and fill in some-of- the blanks.

Also the insurance companies online “quote section” can help explain to you further how to get the process started.

It’s actually fairly easy to find affordable term life insurance plans and you’ll be pleasantly surprised at some of the low quotes you’ll see, especially when you compare it to some of the whole life quotes you’ll see that have costly monthly premiums that can be quite shocking at times!

A Life Insurance Plan is a Contract Between the Insurer and the Insured

A life insurance policy is a contract which is entered into between the insured who is the plan holder and an insurance company. The contract is essentially an undertaking by the insurer to pay out the sum assured if an event such as death or a critical illness arises.

To bring the contact into effect the plan holder either makes a single payment on commencement or agrees to make payments to the insurance company on a regular basis for a defined period of time. In both cases the money paid is referred to as the policy premium. In many countries life insurance also means providing for the payment of funeral expenses as well as the payout of the sum assured. However in countries like America policy payouts are usually only for the sum assured on the death or critical illness of the insured.

The sum which is stated in the plan is generally paid to the insured person’s beneficiaries in the case of the death of the insured and therefore the plan holder enjoys peace of mind in knowing that his or her beneficiaries are going to be taken care of after his or her death.

Although at times the sum assured can be paid out before death where the policyholder is diagnosed with an illness that is serious in nature, to ensure that the insurer’s liability is kept within workable limits, cases such as death or serious injury arising out of war, riot, some natural disasters and death from suicide are not insured.

Life insurance policies come different forms and can provide not simply protection but also serve as a form of investment. For example, a lot of term life insurance plans are designed strictly to offer protection for a set period of time and will only pay out if death or serious illness occurs during the specified term. If no such event occurs then the policy simply lapses having no value.

By contrast, many whole life insurance and universal life policies stay in force throughout the life of the plan holder and pay out on death or the diagnosis of critical illness. They do however also acquire a cash value based upon the value of the investment supporting the policy and the policyholder can take some or all of this value from the plan in accordance with the terms and conditions of the contract. This form of policy is frequently used as a savings vehicle for such things as the payment of education fees or to provide a lump sum for retirement.

Life insurance is also commonly used in business, particularly within partnerships, to safeguard the business against the death of someone who has a financial stake in the business. In this case it is common for one person to buy a plan and act as the plan holder and beneficiary with another person being the insured.