When shopping for a life insurance product, you have a lot of questions in mind. Before embarking on the activity, you need to know some basics about life insurance as well as factors and processes that come along with it (same with docoop). Here are common questions that prospective policy owner just like you have, and the corresponding answers to them.
Is it possible to apply for two or more life insurance policies?
Although not a necessity, policy owners take out permanent insurance for guaranteed benefits, and then another term life insurance to meet short-term needs. However, be warned that most insurance companies will scrutinize the fact that you have more than one life insurance policy under your name.
How do I calculate the right amount of insurance for my policy?
The answer to this wholly depends on your existing and future needs. There are online life insurance calculators which will enable you to compute for the life insurance rate that you will most incur once you purchase a life insurance policy.
What are the repercussions for not paying life insurance premiums on time?
Policy owners typically have 30 to 31 days of grace period before the policy lapses. If you are able to pay off the premium within the grace period, then the policy will still be in force. In the case of a permanent life insurance product, the insurance company may deduct the premium owed from the cash value instead.
What happens when my life insurance policy lapses?
A policy lapse refers to the inability of a policy owner to make payments within the grace period. In the case of a permanent life insurance policy, the cash value built with it will most commonly pay off any unpaid premium. For term life insurance, the policy may ultimately end if the policy holder is unable to make payments on time.