Life Insurance FAQ

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MS
MS

If someone responds on their life insurance policy that they are a non-smoker (the absolute truth at the time), but that person (stupidly) takes up smoking 3 years later, is that person required to notify the insurance company? Will there be ramifications on a payout if it were to ever come to that? How is this situation typically handled?

Scott
Scott

I have two policies. One says that the insurer reserves the right to change the premiums, but it doesn’t say when or by how much. Another one says the insurer reserves the right to change the premiums upon each five (5) year renewal, but again it doesn’t say by how much.

Is this acceptable?

ken
ken

Wow! May be the most complete Life Ins. related FAQ I’ve seen; really well done.

I may have missed it; but, you might want to say something about the CLU degree and how that is one of the best ways to really gauge the “expertise” of a life insurance broker or agent. Not the only way, just probably the best way.

Nelly
Nelly

Hi, my husband and I are planning to get life insurance but we are not sure which one. we are both 40 years old, no kids and non-smoker. I have friends who are insurance agents but in different companies- manulife and primerica. I need advise pls. Thanks

Mark
Mark

I am a small business owner and am the only ’employee’. Can my business purchase life insurance on my and my families behalf, thus write off the premium as an expense, and still have the only beneficiaries be my wife and children? Or is the company the only allowable beneficiary?

Thank you.

Clark
Clark

Is the cash value build-up inside a life insurance policy taxable? I read somewhere that Canadian tax law places certain limits on growth or something. I’m a Canadian citizen living and working in the United States. I want to look into doing a Whole Life policy, but I’m concerned about the potential taxation of the cash value.

CM
CM

I have a 20 yr term policy costing 129$ per month for 250000 coverage that ends in 5years. I had a policy at age 19 that cost 19/mth for 25,000 with all the different agents and thier promises of better coverage I went from 19$ to 110$ for a 35000 life and 129$ fr the 20 yr term. Having lost my job and needing coverage I canceled the 35000 and kept the 250000 as my daughter was young and I a single older mother. Obviously, I feel I have been mislead but its done so…I now found work but at… Read more »

Edna
Edna

my parents took out life insurance for 10,000 over 20 years ago she died 10 years ago but my father is still alive and is 87 years old and his insurance keeps going up, almost 400 a month now, in the past 10 years he has payed atleast 30,000 to his insurance is there a way we can cancel it and still recieve his insurance money.

Wendy Watmough
Wendy Watmough

I have been paying for years on a small death benefit for myself and husband. We have since separated and going for a divorce. I wish to keep paying the policy for him as I think they are connected. I am the beneficiary so would I still receive the policy when he passes away.