Term Life Insurance Articles
The Difficulty That Comes With Proof Of Insurability In Term Life
2010-09-01
Term life insurance is one of the cheapest life insurance policies that you can purchase. One of the advantages of this policy is that you can select the term for your insurance. To purchase a term life insurance, all you have to do is search the Internet for a term life insurance quote (preferably, more than one) and purchase a policy that meets your needs. However, there is one big disadvantage with term life insurance-the requirement for proof of insurability.
A proof of insurability is evidence of good health that might be required when applying for term life insurance. It basically means that the purchaser of the policy meets certain health standards as set by the insurance company. The proof of insurability often takes the form of medical tests that the purchaser must undergo before he or she is granted life insurance.
As mentioned, term insurance is life insurance for a particular term. If the insured dies during the term, the death benefit will be paid by the insurance company, and if the insured dies even a day after the last day of the term, no benefit will be paid by the insurance company. This is where the problem with proof of insurability can arise. For example, let's say the insured acquires a terminal illness during the insurance term, but does not die until after the life insurance term has expired. In this case, the purchaser of the insurance will not have an insurance policy after the initial term has expired and will not be able to renew the insurance policy or purchase a new one. In other words, he or she will not be able to provide a proof of insurability because of the terminal illness.
There are some things that can be done to get around the problem with proof of insurability. Look for a term life insurance policy that allows you to renew the policy without proof of insurability. Ask the insurer for a guaranteed insurability rider. This kind of rider guarantees that when it is time to renew your term life insurance, you do not have to provide proof of insurability. However, to take advantage of this feature, you might be asked to renew your insurance policy within a set number of days, failing which will void the guarantee. Also, these riders might come with an expiry date. So, it is important that you read the rider carefully.
If you are looking for a term life insurance quote, look for one where you do have to provide proof of insurability. This will ensure that you will not have any issues when it is time for you to renew your insurance policy.
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Term life insurance is one of the cheapest life insurance policies that you can purchase. One of the advantages of this policy is that you can select the term for your insurance. To purchase a term life insurance, all you have to do is search the Internet for a term life insurance quote (preferably, more than one) and purchase a policy that meets your needs. However, there is one big disadvantage with term life insurance-the requirement for proof of insurability.
A proof of insurability is evidence of good health that might be required when applying for term life insurance. It basically means that the purchaser of the policy meets certain health standards as set by the insurance company. The proof of insurability often takes the form of medical tests that the purchaser must undergo before he or she is granted life insurance.
As mentioned, term insurance is life insurance for a particular term. If the insured dies during the term, the death benefit will be paid by the insurance company, and if the insured dies even a day after the last day of the term, no benefit will be paid by the insurance company. This is where the problem with proof of insurability can arise. For example, let's say the insured acquires a terminal illness during the insurance term, but does not die until after the life insurance term has expired. In this case, the purchaser of the insurance will not have an insurance policy after the initial term has expired and will not be able to renew the insurance policy or purchase a new one. In other words, he or she will not be able to provide a proof of insurability because of the terminal illness.
There are some things that can be done to get around the problem with proof of insurability. Look for a term life insurance policy that allows you to renew the policy without proof of insurability. Ask the insurer for a guaranteed insurability rider. This kind of rider guarantees that when it is time to renew your term life insurance, you do not have to provide proof of insurability. However, to take advantage of this feature, you might be asked to renew your insurance policy within a set number of days, failing which will void the guarantee. Also, these riders might come with an expiry date. So, it is important that you read the rider carefully.
If you are looking for a term life insurance quote, look for one where you do have to provide proof of insurability. This will ensure that you will not have any issues when it is time for you to renew your insurance policy.
