Whole Life Insurance Illinois IL
Reader’s Question:
I travel from Illinois, my hometown, to the West Coast once or twice a month due to company-related concerns. My company doesn’t offer adequate coverage, so I’m planning to get additional life insurance. What do you recommend, assuming budget is not a constraint?
Tommy
Chicago, IL
Tommy, usually, company-sponsored life insurance policies are good only as long as you are employed to them. Once you retire or decide to leave for another company, you can say good-bye to your coverage.
Now, let’s assume that you did not buy additional coverage and stayed with the company until you got to the age of 60. Upon retirement, you are no longer covered and at the same time, no longer insurable as you might have lots of health conditions, making you a very risky person from the insurer’s point of view. Because of the age factor, you might not be able to get life insurance anymore. So, Tommy, to complement your company-sponsored life insurance policy, I would recommend that you get a whole life policy.
Getting a whole life insurance policy will guarantee that your beneficiaries will get your death benefits. Not only does your family get a certain amount, you also get to build up cash value, which you can withdraw if you would like to surrender your policy. You can also borrow or loan against your cash value at lower interest rates. It would be good if you can afford a 10-year limited-pay type of whole life insurance. Getting a 10-years-to-pay program will make sure that your policy will cover you for the rest of your life if pay your premiums during that 10 years. So, be sure to contact your life insurance agent there in Illinois to give you a quotation.
Tags: life insurance, life insurance beneficiary, life insurance premium, whole life insurance
Cash Surrender Value Life Insurance Chicago Illinois IL
Reader’s Question:
What is a “Cash Surrender Value” and why is it under my policy here in Chicago, Illinois?
Leigh Allen
Chicago, IL
“Cash Surrender Value” is basically a clause or stipulation within your life insurance policy that would probably state the amount of money you will be receiving, should you decide to cash-in or discontinue your existing life insurance coverage there in Chicago, Illinois. This kind of feature is mostly found only in whole life insurance, permanent life insurance, universal and variable life insurance or any form of life insurance that covers the entire lifespan of the insured individual.
The actual amount of money that would be returned to the individual who decided to terminate the policy would vary between companies and state regulatory laws. There will be some life insurance provider that would have specific conditions whereby your policy would not actually have any cash surrender value if you cancel within a year or two into your coverage period. Some might also not return the full amount of life insurance premiums you paid to recover the expenses they have incurred when setting up your policy.
Also, state or government regulation may impose a certain amount of standard policy reserve for every life insurance policy, and it is possible that the said company would need to keep your policy for a set period of years (usually two years) to hit this standard so by pulling out soon they may opt to put a charge to you. It would be best to get in touch with your life insurance provider and ask what to expect in the even that you do decide to surrender your policy.
Tags: whole life insurance, life insurance questions, life insurance information, advise
Life Insurance Lapse Illinois IL
Reader’s Question:
Why does a life insurance policy lapse? If my life insurance policy lapse, how can I have it reinstated?
Amy
Chicago, IL
A lapsed life insurance policy occurs when the policy holder fails to pay the life insurance premium when due. When the policy holder missed the payment period, the life insurance company allows a grace period where the policy owner can pay the life insurance premium within the period of 30 to 31 days. If the life insurance premiums remain to be unpaid after the grace period, the life insurance policy goes to the state of a lapsed premium. This happens to term life insurance policy. With permanent life insurance policy, the state of lapse can happen in the initial year or two since there is no significant dividend or cash value. After a few more years, there is a build-up in cash and loan values that makes the life insurance policy not to lapse easily.
Life insurance company gives an opportunity for lapsed life insurance policy to be reinstated. Usually, they allow a 5-year period for the policy holder to pay all the outstanding premiums. However, if the policy holder becomes uninsurable, the life insurance policy cannot be reinstated. In addition, if the life insurance policy has been surrendered for the cash value, reinstatement cannot take effect.
Tags: life insurance
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