Life insurance is a contract between the life insurance policyholder and the insurance company that provides money directly to beneficiaries (named survivors) upon the death of the insured policyholder.
However, the policy may include the following exclusions if the policyholder’s death occurs due to:
- War (declared or undeclared), service in the military (naval or air forces, or in civilian forces)
- Suicide (within two years from the policy issue date)
- An airplane accident (per conditions specified in your policy)
There are two types of life insurance to consider:
- It provides you with coverage for a specific number of years.
- It costs more as you get older.
- It doesn’t have a cash value so you can’t cash it out.
Cash value life (whole life, universal life, variable life):
- The insurer uses part of your premium to set up a financial account that earns interest.
- It gives you actual dollars you can borrow or withdraw.
- It costs more at the start of the policy.
Companies use different methods and factors to decide who they’ll insure; many require a medical exam, but some group plans do not.
Your agent can explain the differences in types of life insurance; tell you what kind of personal information is required when applying for a policy; and what you should consider before purchasing a policy (although in Washington State, each policy comes with a 10-day free look period).
If you have questions or concerns, please contact our office.
All information courtesy of the Office of the Insurance Commissioner of Washington State. You may visit their website by clicking here.
Gress Kinney Parrish Insurance Center, Inc.
3 N 7th Ave Yakima, WA 98902
Phone (509) 575-0300
Fax (509) 452-9870
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