Welcome back to the Naples Life Insurance and Annuity Advisors blog! Lately, we have been addressing all those questions that you may be too embarrassed to ask. For us, there is never a silly question. We understand that financial products such as life insurance can be complicated for those who don’t professionally deal with them on a daily basis. Our insurance specialists and financial advisors in Naples, would love to help you fully understand your policy and get the most out of it.

So far, in our short blog series in part one, part two, and part three, we have covered the answers to these questions:  

  • Doesn’t my employer provide life insurance?
  • A medical exam to buy life insurance? Why?
  • What will the medical exam be like?
  • Can I see my own doctor?
  • What will they be looking for in my exam?
  • Is losing weight a good idea?
  • Do I have to quit smoking as well?
  • What do you mean by classification?
  • Can I lie about my history?

Catch up on part one, part two, and part three or keep reading the conclusion of our short blog series.

What is an underwriter?

They help create your policy.

An underwriter is someone who helps to create your policy. They look into your health history, so lying at any point during your physical is pointless; to formulate your policy they will look at your health and prescription history and will take the results of your physical into consideration so that they can categorize you and figure out the premiums that you will be asked to pay for the coverage that you desire.

What is a death benefit?

It is what your beneficiary with recieve when you die.

For those who aren’t familiar with life insurance, this is crucial to understand for the death benefit is one of the main parts of your insurance policy. The death benefit is a lump sum of money that your beneficiary receives when you pass away. In some cases, you can borrow from your death benefit, during your life. However, if you never return the money that you borrowed, your beneficiary won’t receive the full death benefit amount.

Who is my beneficiary?

The person who receives the death benefit is your beneficiary.

There are a couple persons that will be concerned with your life insurance policy. First, your beneficiary is the person that receives the death benefit. They can be anyone that you designate. In most cases, they are a spouse, child, or grandchild. You are the policy owner, if you are paying the premiums.

How will the insurance company know that I have passed away?

They have to told and sent proof of your death.

When you pass away, your beneficiary must tell the insurance company of your death — this is one of the reasons why it is important to tell your beneficiary that they are indeed the beneficiary of your life insurance policy. Not only must they tell the insurance company, but they must also show proof of your death with a death certificate.       

 

Term or whole life insurance?

It depends.

The type of policy that you choose depends on what you will use it for. Both offer advantages and some term insurance plans can turn into whole life insurance plans. To learn more about these type of policies and their advantages, visit our website or speak to one of our financial advisors in Naples.

If you are interested in speaking to someone in Naples about life insurance, contact Naples Life Insurance and Annuity Advisors. We would love to help you find a policy that fits your needs so you can have peace of mind now and prosperity in the future.