Hi, I’m debating myself on what life insurance to get, single mom 45, I have a term life insurance already through State Farms in Maryland, but I’m trying to make sure in case of death of health complications the term insurance will payout to my beneficiaries? Or I need to get the whole insurance? Not saying that I’m sick just saying in case. Also I was reading that term life insurance doesn’t cover accidental death?
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Term life insurance usually covers accidental death, but check your policy to be sure.
If you’re worried about coverage if you get sick, or if you want a policy that lasts your whole life, whole life insurance might be a good choice. It can build up cash value over time, but it’s usually more expensive.
Talk to an insurance advisor to find the best option for you
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Insurance will pay out. Period.
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There are two main reasons a life insurance company might not pay out:
- Lying on the application: If you hid a serious health problem, like cancer, they might not pay.
- Suicide: In the first two years of the policy, this is usually considered a “contestable period” and they might not pay.
Also, insurance companies don’t pay out death benefits to children. You need to name an adult to take care of the money if you die. This is called a “custodian.”
I’m a life insurance agent, and I usually recommend term life insurance. It’s often the best choice.
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So what happens to the money if the beneficiaries are minor and doesn’t get it?
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It depends on the insurance company.
My most recent policy with Penn Mutual said they could hold the money until the child turns 18.
I’ve seen other companies require a UTMA (custodial account) for the child.
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term will go away. has a ton of exclusions- so i can understand ur point. w/l is perm will pay out wen u die to bene. get some of both right now while young and healthy. wen term expires in future u won’t havta worry bout shopping and spending higher premium for a 10k policy of w/l address what i r trying to now
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Term life insurance has its drawbacks. It ends after a set period and has many exclusions, so I understand your point.
Whole life insurance is permanent and pays out when you die, no matter what.
Consider getting both now while you’re young and healthy. This way, when your term insurance ends, you won’t have to worry about buying expensive whole life insurance later.
That’s what I’m trying to say.