Reader’s Question:

I would like to know what are my options for life insurance in Deer Valley Arizona AZ. What are the different life insurance policies?

Darwin

Deer Valley, AZ

If you have term life insurance policy, and they did not die after the policy expiration date, you will receive their death benefits. If the policy holder died after the expiration of the life insurance policy, then the beneficiaries won’t receive anything from the premiums.

With permanent life insurance, if the policy holder died a while ago, you will receive the death benefits plus the interest it had accrued from the date of death.

For lapsed policy, if your relative had a term life insurance policy or a permanent life insurance policy and if they stopped making payments and the policy lapsed, the insurance company would switch its status to either “extended term” or “reduced paid up”.

Extended term will have to use any built up cash value to buy a short-term life insurance policy. If the life insurance policy expires before the policy holder dies, the beneficiary gets nothing. If the policy holder dies before the policy expires, the beneficiary will collect the death benefits.

Reduced paid up refers to when the life insurance company reduces the death benefits but still keeps the policy in force.

If the life insurance policy lapses due to the death of the policy holder, the beneficiary will have to collect the full death benefits. There will be no time limit as to when the beneficiary can collect the death benefits. The only requirement for this situation is that the death certificate is presented to the insurance company to verify the insured’s death. No one receives the money, if the beneficiary never comes forward.

Tags: life insurance leads, life insurance types