Frequently Asked Questions

Term life insurance provides coverage for a specific period, while whole life insurance lasts for the insured’s lifetime and typically includes a cash value component.

You can choose anyone with an insurable interest, such as a family member, partner, or even a business associate.

Yes, you can designate multiple primary and contingent beneficiaries, specifying the percentage of the benefit each one receives.

A person or entity that receives the death benefit if the primary beneficiary is unable to do so.

It’s a part of certain life insurance policies that accumulates over time and can be used for loans, withdrawals, or to pay premiums.

Yes, if your policy has a cash value component, you can make withdrawals or borrow against it.

The amount you pay to the insurance company to keep your policy active.

It’s based on various rating factors, including age, health, lifestyle, and the amount of coverage you select.

You may enter a grace period where you can still pay the premium without losing coverage. If you fail to pay during this time, the policy may lapse.

The process insurers use to evaluate risk and decide whether to offer insurance coverage to an applicant.

When a policy terminates because the policyholder failed to pay the premiums.

It’s a time after the due date for a premium during which the payment can be made without penalty, and the policy remains in force.

Yes, a policyholder can cancel their policy, often receiving the surrender value if applicable.

It’s the failure to disclose a relevant fact or circumstance to the insurer during the application process.

Restoring a lapsed policy to active status, typically requiring proof of insurability and payment of past due premiums.

When an insurance company denies a claim, usually because it does not meet the policy terms.

Specific situations or conditions not covered by the policy.

A provision that waives premium payments in the event of the policyholder’s disability or other specified conditions.

Voluntarily ending the policy before its term or before maturity and receiving the cash surrender value.

The time frame after the policy starts during which certain benefits aren’t payable.

When a policy reaches the end of its term and the sum assured, along with any bonuses, is paid out.

Some policies allow it, typically from the cash value, without terminating the policy.

When a policyholder stops paying premiums, the policy remains in force but with reduced benefits based on.

The planned increase in premiums over time, usually to keep up with inflation or increasing costs of providing coverage.

Contact the insurance company, complete a claim form, and submit it with the required documentation, like a death certificate.

An add-on to a policy that provides additional benefits or coverage for specific conditions or events.

Yes, you can usually increase or decrease your coverage, subject to underwriting and policy terms.

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

The death benefit paid to beneficiaries is generally tax-free, but other aspects, like cash value withdrawals, may be taxable.

A policy or rider that pays an additional benefit if the insured’s death is the result of an accident.

Yes, some permanent life insurance policies with cash value can be used as collateral.

Yes, if you have an insurable interest in that person and their consent.

It allows policyholders to convert their term life insurance to a permanent policy without additional proof of insurability.

An insurance rider that allows policyholders to use some of their death benefits for long-term care expenses.

A period, typically 10-30 days, where a new insurance policy owner can cancel the policy without penalty.

Look for licensed professionals, get referrals, check reviews, and consider their experience and the services they offer.

Look at the coverage offered, premiums, company ratings, customer service, and the financial strength of the insurance companies.

Brokers can offer a wide range of products from different insurers and provide personalised advice based on your needs.

It depends on the policy type and the insurer’s rules, but life insurance policies sometimes can be transferred.