Auto and Car Insurance

What are the basic rules of term life insurance?

I am looking at 30 year term life for my husband and myself. Why do they need to come out to take blood to check our cholesterol and liver function tests? We are only buying $500,000 each worth of insurance. Is it the dollar amount or the fact that we are 40 right now? How does life insurance work? What if we both die right away does our son get the entire amount or is there a "waiting period" where you have to pay in for a certain amount of time before they get the money? Also, are there any exclusions such as suicide and is this normal for a policy to have these certain exclusions? The company is AIG and I think they are listed as being a solid company. Thank you in advance for your information it is appreciated. After the tests have been taken, can we ask for and receive the results free of charge? For example, can we have our cholesterol levels and CBC results? Or will we get the run-around?

Public Comments

1. Yes, the insurance companies have policies on what type of exam is required and when, and it definitely is related to age. This is standard underwriting procedure. When the policy is issued, it will have an effective date for full coverage. As far as exclusions, you need to discuss that with the company or agent. Suicide exclusions are standard.
2. 1)Yes, most companies require a medical exam. 2)The payout option is up to you. Ie" Lump sum or an annuity... only if your son is over 18. Under 18, they cannot payout to him, so be sure to set up a will and/or trust. YES: 3 You are entitled to get a copy of everything, except for any statements from your Dr. That's up to the Dr to send to you, but lab results are available. They usually make you fax a letter requesting it. 4 If something happens within a year of the policy being issued, the company does what they call a "contestability check" where they review your application and medical info to make sure ther is no fraud.. but it's not a long period of time (usually). Hope this helps. There is usually a 2 year exclusion period if you were to "do something" to yourself.
3. Well based on yours and your husband's age most insurance companies will require some type of exam. I work for State Farm so I am aware of this and we usually do an Interview, Vitals,Blood Profile,Urine Specimen,Resting ECG, & MVR, and it has to do both on dollar amount as well as the age of purchase , because there are different brackets. Now in regards to the money your son will get that as soon as he is of age or whoever is the legal guardian can distribute that but it is always good to have a will as well. Yes most companies do exclude suicide all together as for State Farm it is only within the first two years.
4. AIG is a solid company, I have my life insurance through them also, and I also try to put my clients with them. Everything that you wrote is standard procedure. If your child is under 18 (check with your state), I don't think that it is a good idea for him to be the beneficiary. They are a leading provider of term insurance also.
5. Most insurance companies require a medical exam for coverage over $250,000. If you both die right away, your beneficiary would receive the payout from the life insurance. If you choose your son as beneficiary, he would receive the payout. If he is under age 18, the payout would be managed by a custodian for the child until he is 18. You should contact your attorney and find out how to set this up for your child. There is usually no waiting period after you die, unless there was a suicide. Suicide is usually excluded in most states if it occurs within 2 years of you taking out the policy. In Colorado, I believe it is one year. It is normal for a life insurance policy to have exclusions. Make sure you read and understand all exclusions in your policy. Contact your insurance company for written explanations of anything you don't understand. AIG is a solid life insurance company with an excellent financial stability rating from AM Best. One thing, if you have an issue with the medical exam, there are other options for you and your husband that do not require a medical exam. You can learn more about that option at http://www.term-life-online.com/term-life-insurance-no-exam.html Here are some easy Life Insurance Medical Exam Tips you can use to maximize the savings on your life insurance policy when you take your life insurance medical exam. Try not to eat for at least 8 hours before the examination (12 hours is even better). Drink lots of water the day before and the day of your screening. This will help to ensure the best lab results, best life insurance rating class and maximum savings to you. Undressing is not required. Wear a short sleeve shirt or one that is easy to roll up. This will make it easier to measure your blood pressure. The best time for your physical is in the morning. If a weekday is not available, schedule the exam for the weekend, but in the morning. You can take your screening in your home or at work, whichever is most convenient for you. Avoid coffee, tea or other products that contain caffeine for at least 1 day before your screening. Do not smoke or chew tobacco for at least 24 hours before the screening. The screener will ask you questions about your medical history, including medical conditions, surgeries, medications, or other treatments you may have had. You will be asked the names and addresses of physicians and hospitals that have treated you. It would help to gather this information before your screening to save you time. Avoid nasal decongestants and alcoholic beverages for at least 24 hours prior to your screening. Get lots of rest the night before your life insurance medical exam, and schedule the screening for the least stressful time of day for you. Also, don’t exercise for at least 24 hours before your screening. This could adversely affect your results. I hope that helps! Best of luck to you and your family.
6. You should be covered for most events when the policy starts. The company needs to find out if you are healthy or not, or in between before it determines the rate for your policy. You can get term life insurance quotes from different agents in your area by filling out a quote form at http://www.myinsurancequotes.net. Make sure you are getting the best deal because prices vary alot from company to company. Jared Balis http:www.utahinsurance.org
7. The general procedure of any life insurance is as follow 1) Base on the coverage amount that you and your wife is taking, a medical exam is required to figure out if either of you qualify for life insurance. It also determines what rate you should be paying. 2) Premiums are based on the age closest to the policy issue date. So, if you are 40 now and you turn 41 next month and the policy is issued next month, premiums are based on the age of 41. 3) After both of you have sign the life insurance application and paid the first month premium, you are immediately covered. So if you died an hour later after the life insurance application was signed, your beneficiary will receive the $500,000 4) If you commit suicide during the first year or two, the insurance company will refund all premiums paid to the beneficiary. After the first 2 years, the insurance company must pay death claims no matter how you died. When you get your life insurance policy, you should carefully read it and call customer service (not the agent) if you have any questions about it. I think most states have a law where you have a free look period, which means you haver certain amount of days to review the policy (usually 10 days). If you don't like what you see, you have until that last day to return the policy and get the refund.