Congratulations! You’re Approved
- How soon does my coverage begin?
- Now that I’m approved, should I cancel my existing life insurance policy?
- How do I make my premium payments now and in the future?
- What happens if I miss a premium payment?
- What happens if I become disabled and can’t pay my premium?
- Can I make a claim before I die?
- Can I access the cash value in my term insurance policy at some point?
1. How soon does my coverage begin?
Your policy becomes effective when the life insurance company approves your application and receives your first premium payment along with any signed forms that might be required. We suggest sending a check with your application (see temporary binder) so your coverage begins as soon as possible, providing you with added peace of mind.
2. Now that I’m approved, should I cancel my existing life insurance policy?
Not necessarily. You should never cancel an existing policy until you receive confirmation from your new carrier that your coverage is in force. Otherwise, you risk a gap in coverage that will expose your loved ones to unnecessary financial risk in the event of your death. Even after your new policy is placed in force, it may make sense to keep your current policy, depending on your life circumstances. Before you make a final decision, please ask one of our experienced professionals for their input. They will be happy to assist you in making decisions for your particular situation. We also encourage you to review your life insurance program with your legal, tax and financial advisors. Remember to promptly review your new policy when it is delivered. If you are not satisfied with your policy, you may return it during the “free look” period for a refund.
3. How do I make my premium payments now and in the future?
For most life insurance companies, a check is needed for the initial premium payment. If you submitted money for a temporary binder, it is likely that no money will be needed to complete the insurance process, though there may be forms requiring your signature. If you chose to pay quarterly, semi-annually or annually, the insurance company will send you periodic bills accordingly. If you have elected to pay monthly by automatic draft, the premiums will be debited from the account you select. It is important to pay your premium promptly to avoid having your policy cancelled and being left without coverage. In selecting your periodic payment method, remember that your total cost for insurance over a 12-month period may vary depending on your choice of payment frequency and method of payment.
4. What happens if I miss a premium payment?
Many insurance companies have what is called a “grace period”. If you miss the exact date that the payment is required and send the payment in late, many times an insurer will give you a certain amount of time to make the payment. However, it is important to keep in mind that if you fail to make a timely payment, you risk having your policy cancelled and losing your life insurance coverage. In that case, you may need to complete additional paperwork to reinstate your current policy or even reapply for a new policy. When reapplying, there is no guarantee that you will get the same rate you enjoyed on your previous policy, or that your application will be approved.
5. What happens if I become disabled and can’t pay my premium?
Many life insurance companies offer an added service in which they will forgive the payment of premiums while you are disabled. This feature is commonly referred to as a “disability waiver of premium.” There is an additional cost for such features. Be sure to ask your LifeSource Direct.com representative about this option and its cost when discussing your life insurance needs.
6. Can I make a claim before I die?
In some cases, you can receive a portion of the death benefit of your policy if you are terminally ill. Our representatives can tell you which companies offer policies with this feature.
7. Can I access the cash value in my term insurance policy at some point?
No. Unlike permanent life insurance policies, the option to access the cash value of a policy does not exist with term life insurance coverage. Term life insurance policies have no cash value.