Life Insurance Exclusions

Life insurance companies and agents often get a bad reputation because people feel the insurance company is looking for an out on the policy.

One life insurance exclusion is suicide within the first two years of the policy. If the insured commits suicide after two years  the life insurance policy will pay out. Of course, this assumes that the insured answered the application questions honestly and did not leave out any pertinent details.

Permanent Life Insurance

Permanent life insurance is a term sometimes used for life insurance, such as whole life or endowment, where the sum assured is due to be paid out at the end of the policy and the policy accrues a cash value.

 

Un Claimed Life Insurance Benefits

According to the Canadian Life and Health Insurance Association, 22 percent of the people who request a search for lost life insurance policies find one and in about 25 percent of those case  the policies had actually been surrendered for their cash value.

Mortgage Life Insurance

Mortgage Life Insurance is insurance that can be purchases from a lending institution.

Mortgage Life Insurance is very different from individuals life insurance because the coverage declines each year of declines as the mortgage declines. Some additional differences between Mortgage Life Insurance versus individual life insurance are the following: 

1. The bank is the beneficiary. On an individual life insurance policy the insured can choose their own beneficiary.

The Mechanics of Mortgage Insurance

If mortgage insurance were actually sold in a fair way, it would just be a bad deal. But mortgage insurance is sold with out qualifying the purchaser. After you claim, the insurance company steps into compensate you, so that you can compensate the bank. That is if you are lucky, often the bank does not  really take good care to sign you up properly and the insurer may back out of the deal claiming that you (the client) have lied on the initial application form.

Mortgage Insurance

Mortgage Insurance:

Mortgage insurance helps lenders by providing protection against the risk of a borrower defaulting on a mortgage loan. Generally mortgage  insurance covers a portion of the expanses and a loan is foreclosed. Responsible risk management with its risk-based  pricing model, which prices the mortgage insurance premium according to the unique risk of each loan. 

Life Insurance

Life Insurance:

Life Insurance Provides a monetary benefit to a decedent's family or other beneficiary and may specifically provide for income to an insured persons family, burial, funeral and other final expenses. Life Insurance Policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.