LIFE INSURANCE

Life insurance is an important form of financial protection for families in the event of tragedy. The choice of the type and amount of life insurance depends on each person’s financial needs and individual circumstances.

Types of Life Insurance

There are several types of life insurance, but the two main types are Term Life Insurance (also known as term) and Permanent Life Insurance (such as whole life or universal life insurance) among others.

Important Life Insurance Concepts

Below we will discuss the important concepts and terms used in life insurance policies in order to understand the different options and benefits offered by insurance companies.

Beneficiary – beneficiaries are the people you choose to receive the money from the life insurance policy.
Cash value – is a portion of permanent life insurance that you can use to pay off your loans, such as cash or to pay policy premiums. Cash value generally accumulates over time and can be used while you are still alive.
Death benefit – the amount paid to the beneficiary when the policyholder dies.
Assets – the money and property owned by a given person, especially at death.
Guaranteed Renewal – a policy that must be renewed by the insurance company as long as you continue to pay your premium.
In-force illustration – the in-force illustration is a picture of your insurance policy. It will show you exactly what has happened from the beginning of your policy to the present date, and what may happen in the future, maintaining current assumptions. The illustrations normally show values according to current assumptions, as well as values according to the warranties provided under the policy.
Maturity date – the date the life insurance policy is paid out.
Policy – a contract between you and your insurance company. The policy tells you what is covered and what the insurance company is obligated to pay.
Premium – the fee you pay to the insurance company for your policy.
Important Note – The cash value and death benefit of a life insurance policy are generally exempt from creditors, claims in bankruptcy proceedings, foreclosure, attachment or other legal process.

Types of Life Insurance Policies

Temporary Life

Temporary policies-as their name implies, they are intended to cover insurance needs that are temporary. Such as paying off a mortgage or other debt, or paying college expenses.

TERM LIFE: Most term life policies offer a death benefit that guarantees a fixed payment to your beneficiaries if you die during the term of the policy. The death benefit and premium are generally fixed and have no cash value. Term policies only last for a specified period of time. For example, the terms can be 1 year, 5 years, 30 years, etc. The death benefit may increase, decrease or remain the same during the term.

ANNUAL RENEWABLE TERM: These policies have a term of 1 year. What you pay, also known as the premium, changes each year according to your age when you renew your policy.

LEVEL TERM: These policies have terms lasting several years. The policy premium is generally fixed for the term of the policy. But, there are times when the premium changes after several years. Make sure you know before you buy this policy.

Permanent Life

These policies offer coverage for your lifetime and have other features and benefits. Permanent life insurance provides a death benefit and cash value. The unique feature is the cash value savings component that grows over time. These policies offer financial flexibility because they allow you to withdraw, invest or borrow from cash value earnings while you are alive. You can also use the cash value to pay future premiums.

TRADITIONAL WHOLE LIFE: Premium is based on your age at the time you purchase the policy. The younger you are, the lower the premium. The amount you pay, the death benefit and the cash value are fixed and do not change over time.

UNIVERSAL LIFE: Universal life is a type of whole life policy, but the amount of premium you pay, death benefit or cash value may change.

*️⃣ Renew your policy every year. Request a “current illustration” to ensure that the policy values have not changed. The current illustration is a picture of your insurance policy. It will show you exactly what has happened from the beginning of your policy to the present date, and what may happen in the future, maintaining current assumptions. If your policy values have changed, you may need to adjust your premiums to avoid losing your death benefit or cash value.

OTHERS

Consult with an agent, company, attorney or financial advisor about how the insurance below differs from life insurance.

* The annuity is a financial instrument for saving money. Most people use them for retirement or to accumulate savings. They also serve as a source of money for your family and other heirs.

* Credit, accident and health insurance and credit life insurance. Credit insurance is sold with a loan, credit card or other credit account and is designed to pay your lender if you are unable to make payments on your own. See our Credit Rights Statement for more information.

* Paid-Up Funeral Insurance. This is a special type of policy that pays in advance for funeral expenses.

Life Insurance Shopping Guide

Thinking of buying life insurance? Not everyone needs life insurance. Consider your age, your assets, and whether you have dependents for financial support.

People buy life insurance for many reasons. Ask yourself if any of these factors apply to you.

1 – Do you need to replace your income to support your spouse, children or other family members?
2 – Will your family need help paying for your funeral expenses?
3 – Do you owe money, such as a mortgage, credit card debt or student loans?
4 – Do you think your children will need help paying for college?
5 – Do you have a large estate that may be subject to state or federal income tax?
6 – Do you own your own business?
7 – Would you like to leave money to a charity?

COSTO

¿COMO SE DETERMINA EL COSTO?

Cuando solicite un seguro de vida, la compañía considerará los factores de riesgo y determinará cuánto va a cobrar si decide venderle una póliza. Por lo general, tendrá que responder a preguntas sobre su salud. Es posible que también tenga que entregar registros médicos, hacerse un examen físico o responder a preguntas sobre sus finanzas.

¿PUEDE HABER CAMBIOS DE LA PRIMA?

La cantidad que paga por el seguro de vida puede cambiar con el tiempo. Cuando compre un seguro de vida, asegúrese de preguntar:
¿Puede cambiar la prima?
¿Cuánto puede cambiar?
¿Con qué frecuencia puede cambiar?

¿COMO AFECTA EL SEGURO DE VIDA A SUS FINANZAS?

El seguro de vida es un activo que puede afectar sus finanzas y determinar si califica para los programas gubernamentales como Medicaid. Hable con un agente, con la compañía, un abogado o con un asesor financiero para saber cómo le puede afectar el hecho de tener un seguro de vida.

COBERTURA

¿QUE CANTIDAD DE SEGURO DE VIDA DEBO COMPRAR?

El dinero que su póliza de seguro de vida pague a sus beneficiarios puede ayudarles a pagar sus gastos de la vida diaria, cualquier deuda que quede en una casa, la matrícula universitaria y cualquier otro gasto futuro. Haga una lista de sus responsabilidades financieras actuales y futuras y hable con su agente, con la compañía, su abogado o con un asesor financiero para determinar la cantidad de seguro de vida que debe comprar y si necesita que la cobertura dure un período de tiempo corto o largo.

¿PUEDE AGREGAR COBERTURA?

Puede agregar más cobertura a una póliza si paga una prima más alta.

* Un aumento del seguro a término aumenta la cobertura de vida a término de una póliza de vida entera o universal.
Por ejemplo:

Ya tiene una póliza de vida universal de $100,000.
Necesita $500,000 de cobertura en total.
Puede aumentar $400,000 de cobertura a su póliza de vida universal agregándole una opción de seguro temporal.
($100K + $400K = $500K)

* Aseguranza garantizada significa que puede incrementar su cobertura, sin importar su edad o estado de salud. Por lo general, hay una fecha límite para comprar esta cobertura, como por ejemplo, antes de jubilarse o de cumplir los 50 años.

* La muerte accidental es un beneficio por muerte que se paga si usted muere debido a un accidente. A veces la compañía le pagará el doble del beneficio por muerte.

* La exención de la prima por discapacidad paga la prima si usted queda “discapacitado” como se define en la póliza. Esto suele ocurrir solo en el caso de personas menores de 60 años.

* La opción de beneficio por muerte acelerada paga por adelantado una parte o la totalidad del beneficio por muerte mientras vive con una enfermedad terminal, una enfermedad específica o una enfermedad de cuidado a largo plazo. Las personas muchas veces incluyen esta opción para pagar la atención que necesitarán al final de la vida. El médico debe confirmar que no puede hacer ciertas tareas diarias, como bañarse, vestirse o comer.

* La cláusula conyugal aumenta la cobertura de seguro de vida a término para su cónyuge. Esta opción combina dos pólizas en una.

* La cláusula infantil aumenta la cobertura de seguro de vida a término para sus hijos. Por lo general, deben tener al menos 14 días de vida y la cobertura generalmente termina cuando cumplen los 21 o 25 años.

PERSONALIZACIÓN

¿Tiene la póliza diferentes maneras de hacer los pagos?
La compañía de seguros generalmente paga el beneficio por muerte en un solo monto total, pero hay otras opciones. Tanto usted como su beneficiario pueden determinar cómo se pagará el beneficio por muerte. Las opciones comunes incluyen:

Opción de interés. La compañía mantiene el beneficio por muerte. El interés que se acumula con el beneficio por muerte se paga al beneficiario de manera regular.

Periodo fijo. La compañía paga el beneficio por muerte con intereses de manera regular durante un determinado período de tiempo.

Reembolso de por vida. La compañía paga una cantidad mensual fija al beneficiario por el resto de su vida.

¿Se renueva automáticamente la póliza?

La Renovación Garantizada le permite extender una póliza de vida a término para términos adicionales sin importar si está buena o mala su salud y sin tener que someterse a un examen médico. Si piensa comprar una póliza de vida a término, pregunte si tiene “renovación garantizada” o si debe volver a solicitar la renovación de la póliza al final del plazo. Con la renovación garantizada, puede renovar una póliza incluso si se enferma durante el período. Además, pregúntele a su agente o compañía si hay una edad en la que ya no puede renovar la póliza.

¿Tiene la política un período de “mirada libre”?
El período de mirada libre le da más tiempo para revisar su póliza y decidir si le conviene a usted. Durante el período de mirada libre puede cancelar su póliza por cualquier motivo y recibir un reembolso completo. Pregunte a su agente o compañía si la póliza que está considerando tiene un período de mirada libre.

Know Your Rights

** You can skip a payment without losing coverage.

Most policies have a grace period of 31 days after the premium payment deadline. You can make a late payment without being charged interest and without losing coverage. If you die during the grace period, your beneficiary receives the death benefit minus the back premium.

** You can reinstate an expired policy.

If you do not pay your premium, your policy may lapse. To reinstate a lapsed policy, you will probably have to pay the lapsed premium plus interest. If you received a loan backed by your cash value when the policy lapsed, you will probably have to pay the interest owed and restart the loan. Most companies are willing to reinstate your policy within five years, but you will probably have to fill out a health questionnaire or undergo another medical examination.

** You can sell your insurance policy

The life insurance policy is personal property. You can convert your life insurance policy to cash or use part of the money that would have been used to pay the death benefit. You can sell it as you would any other property, but there are special rules. For more information, see the Life Settlements section of the Texas Department of Insurance’s How Life Insurance Works page or contact your agent, insurance company, attorney or financial advisor.

** The insurance company cannot object to the payment of your claim after 2 years.

Life insurance policies have a 2-year dispute period. This means that if you die within this period, the company can investigate the cause of death and review your application. If you die more than 2 years after purchasing the policy, the company must pay the death benefit. You cannot be denied payment unless you fail to pay your premium, submit a false statement or if you concealed information.

** The insurance company must pay claims in a timely manner.

The insurance company must pay the beneficiary within 2 months after receiving proof of death and verification of the beneficiary. For an individual life policy, the company must also pay interest on the death benefit from the time the company receives proof of loss until the time the company accepts the claim and offers to pay the death benefit.

** You can ask for a refund of your premiums

You can ask for a refund of the premiums you paid for life insurance if you decide to cancel your policy or if the company denies payment of your death benefit.
The life insurance company must refund your money if you change your mind and decide to cancel the policy within the free look period.Most companies offer a free look period of at least 10 to 20 days after purchasing the policy.
If you prepaid premiums and then cancel the policy, the life insurance company must refund the amount of the prepaid premium that was not applied to your coverage because it was a “no-profit premium.”
The company will not refund your premiums if you survive a term policy unless you have purchased a “return of premium” policy or clause.
Your life insurance company is obligated to reimburse you for your premiums if the company refused to pay your claim during the two-year period in which it was able to investigate the cause of death.
The life insurance company will refund your premiums if it does not pay you the death benefit due to suicide.

Obtain your Insurance in a Fast, Effective and Efficient way.

Explore our wide selection of services that meet a variety of needs, ensuring complete customer satisfaction.

Years of Experience.

Customer Service.

Satisfied customers.