The bottom line What does life insurance cover? It usually pays a death benefit to the beneficiaries you name when you die while the policy is in force. Term coverage lasts for a defined period, while permanent coverage is designed to last for life. Some permanent policies also build cash value, and optional riders can … Read more

The bottom line Can life insurance keep rentals from forced sale? It can provide cash for a mortgage or other estate costs, but it cannot guarantee that heirs will keep the property. The plan works only when the benefit, ownership, beneficiary, and policy term fit the debt. A rental can be valuable and still be … Read more

The bottom line What does life insurance not cover? A life insurance policy pays a death benefit when the insured dies, but it is not health insurance or a promise to pay every loss. The contract may limit payment for suicide, material misrepresentation, a lapse, or a listed exclusion, so the policy wording controls. Life … Read more

The bottom line To learn how to read insurer financial statements, start with statutory accounting, then review the balance sheet, income statement, cash flow statement, and capital measures together. Look for trends and read the notes before drawing a conclusion about an insurer’s ability to meet policy obligations. Learning how to read insurer financial statements … Read more

The bottom line Can free look rules differ by state? Yes. Life insurance free look periods are set by state law and the policy, often giving you 10 to 30 days after delivery to return coverage for a full premium refund. Read the policy notice first because special rules can change the deadline. The free … Read more

The bottom line What happens to life insurance if the company goes bankrupt depends on the state guaranty system, but eligible policyholders generally keep protection up to statutory limits after a court-ordered liquidation. The policy may be continued, transferred, or replaced, while amounts above the limit may become claims against the insurer’s estate. An insurer’s … Read more

The bottom line When should I buy life insurance? Buy it when someone would face a financial loss without your income, while your current age and health can still be underwritten. That may be today or after a life event. Starting earlier can make level-term coverage easier to afford, but a later application can still … Read more

The bottom line What happens if an option date is missed? You may lose a contractual choice, such as renewing or converting coverage, or you may face a lapse if the missed date was a premium deadline. The policy and applicable state rules control the result, so contact the insurer promptly. An option date is … Read more

The bottom line How are variable life fees charged? They are usually taken from your premium, cash value, or investment options at different points in the policy, so the amount you pay cannot be understood from the premium alone. The exact charges depend on the contract, your circumstances, and the options you select. Variable life … Read more

The bottom line Can term policies overlap safely? Yes, an intentional overlap can prevent a coverage gap while a new policy is being underwritten, but keep the existing policy active until the new policy is issued and received. Traditional underwriting can take up to a few months, according to the NAIC, so timing should follow … Read more