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Life gets tricky sometimes, but life insurance shouldn\u2019t leave you scratching your head. This guide gives you clarity with answers to the 11 most asked life insurance questions.<\/p>\n
1. How does life insurance work?<\/b><\/p>\n
Basically:<\/b><\/p>\n Who needs the benefit after you\u2019re gone? Is it your spouse, partner, children, or grandchildren?<\/p>\n You should name more than one beneficiary just in case one of them passes away before you do.\u00a0<\/p>\n You have multiple options for where the benefit goes and how much is received.<\/p>\n Here\u2019s a quick example:<\/b><\/p>\n You could also split the benefit three ways, meaning your husband, son, and cousin would each receive \u2153 of the total benefit.<\/p>\n Minors can\u2019t directly receive life insurance benefits. It\u2019s all a matter of legalities. Name a trust as a beneficiary if you want a minor to receive the payment. This way, a guardian will look over the funds until the minor turns 18.\u00a0<\/p>\n You could leave the benefit to a charity, as well.<\/p>\n 3. How do I qualify for coverage?<\/b><\/p>\n The answer depends on which policy you apply for.<\/p>\n We\u2019ll use our\u00a0Simplified Issue Whole Life Insurance<\/a>\u00a0as an example. We approve your coverage based Most other life insurance policies require a medical exam, which is done by a licensed healthcare professional.<\/p>\n The exam works like a standard physical where you:<\/b><\/p>\n You might need to get an EKG taken if you request a large benefit or if you\u2019re a certain age.<\/p>\n 4. Why does a life insurance company need my medical information?<\/b><\/p>\n Your age and medical information are used to approve or deny your application. What happens if you get the green light?<\/p>\n Your health information puts you in a rating classification that determines the premium you pay for life insurance.\u00a0<\/p>\n 5. How do I prepare for the medical exam?<\/b><\/p>\n Follow\u00a0<\/b>these tips<\/b><\/a>\u00a0to have a great life insurance exam:<\/b><\/p>\n Avoid the following things 12 hours before the exam:<\/b><\/p>\n Have the following information on-hand:<\/b><\/p>\n \u00a0<\/p>\n 6. Does life insurance have exclusions?<\/b><\/p>\n Yes. Life insurance policies have exclusions.<\/p>\n A claim could be denied when a policyholder:<\/b><\/p>\n 7. How much life insurance do I need?<\/b><\/p>\n Google this question. You\u2019ll find a lot of different answers!\u00a0<\/p>\n Some sites say you should have 10 to 12 times your yearly income in coverage. Other sources give you an outline and point you in the right direction.<\/p>\n That\u2019s what we\u2019re here to do.<\/p>\n First, think about your financial obligations like<\/b>:<\/p>\n How much would it cost to cover these items?<\/p>\n Do you want to leave money behind for a child or grandchild? Sit down with them to talk about their own bills and living expenses.<\/p>\n Combine your financial obligations with how much you want to leave behind. That should give you a solid ballpark figure.<\/p>\n 8. I have life insurance through my job, but is it enough?<\/b><\/p>\n Your employer might provide enough life insurance to cover one or two years of your salary. That\u2019s a good start, but let\u2019s say you leave your job.<\/p>\n Your group life insurance will either:<\/b><\/p>\n Terminate, leaving you with no coverage, or;<\/p>\n<\/li>\n Continue if you can convert your plan into a personal policy.\u00a0<\/p>\n<\/li>\n<\/ol>\n Maybe you\u2019ll stay in your current job through retirement. Is your current coverage amount enough?<\/p>\n It\u2019s legal to have more than one life insurance policy. You can rely on an\u00a0independent agent<\/a>\u00a0to help you pick the right 9. Is life insurance taxable?<\/b><\/p>\n Usually, the beneficiary won\u2019t pay taxes. If the benefit goes to an estate, then the proceeds will be subject to estate taxes.<\/p>\n Some insurance companies offer to hold onto the life insurance proceeds after the policyholder\u2019s death. The benefit gains taxable interest when this happens.<\/p>\n 10. How will the life insurance company know about my death?<\/b><\/p>\n A beneficiary or lawyer will file a claim with the insurance company.\u00a0<\/p>\n Your beneficiary or lawyer would call 800-371-9622 to file a claim with Pekin Life Insurance Company.<\/p>\n 11.\u00a0<\/b>Can I add coverages to my life insurance policy?<\/b><\/p>\n Pekin Life Insurance Company offers several coverage enhancements for your policy.<\/p>\n Long-Term Care<\/b><\/p>\n This enhancement lets you use a portion of the life insurance benefit to pay for long-term care expenses. This is available on permanent life insurance policies.<\/p>\n Take a look at these monthly long-term care costs courtesy of the<\/b>\u00a02018 Genworth Cost of Care Survey<\/b><\/a>:<\/b><\/p>\n These costs will continue to go up.<\/p>\n Accidental Death Benefit<\/b><\/p>\n This benefit can provide additional payment for deaths caused by accidents. It works well for anyone who works in a high-risk environment or drives more than the average person.<\/p>\n Here are more things you should know about the accidental death benefit:<\/b><\/p>\n Disability Income<\/b><\/p>\n You might think catastrophic injuries cause most disabilities. Fractures, sprains, and muscle sprains are only\u00a0the fifth-leading cause\u00a0of short-term disability claims<\/a>, Pregnancies, musculoskeletal disorders, and digestive disorders are more likely to make you miss work.<\/p>\n That\u2019s where the disability income enhancement comes in. It replaces a portion of your income when a disability keeps you away from your profession.<\/p>\n This enhancement is available on permanent life insurance policies.<\/p>\n Identity Theft<\/b><\/p>\n\n
2. How do I choose beneficiaries?<\/b><\/p>\n\n
\n on answers to quick health questions.\u00a0\n<\/p>\n\n
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\n policy after you determine how much coverage you need.<\/p>\n\n
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