If you have never purchased a Florida life insurance policy
before—or even if you already have a policy—you likely have some questions
about certain aspects of your coverage. The following questions are those that
are most commonly asked in regard to life insurance policies, coverage and
more.
Do I need life
insurance if I’m young and single?
Although you may not have a spouse or dependents yet, there
are certainly some advantages to purchasing life insurance at this point. First
of all, you will be able to lock in some very low rates. As long as you pay all
of your premiums on time, you will be guaranteed insurability; this means that
an insurance company cannot raise your rates over time due to illness, the
birth of a child, marriage or any other life event.
How many policies can
I have?
You can have multiple life insurance policies from different
insurance companies and, in some cases, even the same company. However, if you
choose to purchase multiple policies from the same company and the total value
of these policies is more than what you would typically need, you should be
prepared to answer some questions about why you want to purchase additional
Florida life insurance.
What if I do not pay
my premiums?
In the event that your premium payment is late, most
companies will give you a 30- or 31-day grace period during which your coverage
will not lapse. This varies from company to company, however, so you should be
sure to ask your insurance agent about the rules for your particular policy.
What happens if my
coverage lapses?
When you fail to make your premium payments before the end
of the provided grace period, your coverage will lapse. If you have a permanent
policy that builds cash value over time, you may be able to borrow enough
against it to pay your premium before this occurs. If you have a term policy
and you do not make your payment, the policy will lapse and your coverage will
end. Future coverage may be more expensive due to your failure to make timely
payments, as well.
Can I name anyone as
my beneficiary?
When you purchase Florida life insurance, you will need to
name a beneficiary—or a person who will receive the proceeds from your policy
in the event of your death. This person can be anyone you designate, but special
rules will apply to individuals who are under the age of 18. Similarly, you can
name multiple beneficiaries and determine the percentage of the proceeds that
each beneficiary will receive.
Can I buy a policy
for someone else?
In most cases, you can only buy insurance for someone else
you have an ‘insurable interest’ in that person. This means that there should
be a valid reason why you would want to purchase insurance. In the state of
Florida, this person must be your spouse, live-in companion, immediate family
member, child or even business partner. You can also purchase life insurance
for a child or a spouse without their knowledge.
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