There are several reasons you may wish to cancel your life insurance policy; more often than not, it is a financial reason. Perhaps you can no longer meet up with the premium payments, or you are not happy with your plan anymore. 

Whatever the case, we would advise you to discuss with your agent whether canceling your policy is the best step to take concerning your circumstances.

Step By Step Guide On How To Cancel Your Primerica Life Policy

Step 1: Call customer care to speak with an agent – virtually all requests in insurance companies start this way; by reaching out to their contact center. It is usually the easiest way to make inquiries or get anything done per your request. It is also the fastest since responses are provided in real-time. 

Step 2: Provide necessary details – the next step is to provide the agent with all the important information to handle your request or complaint. The most important one is your policy number, be sure to have it readily available as there is a high probability the agent will request it. 

Step 3: Request for policy cancellations – now that the company has confirmed that you have a policy with them, they are obligated to serve you. You communicate your needs with them; in this context, you want to cancel your life insurance policy and subscriptions. 

Step 4: Ask for evidence of confirmation – the final step is to ensure your request has been acknowledged. Have the company send you a mail confirming that your policy has been canceled or that they are in the process of doing so. This will come in handy should you suspect that Primerica did not handle your request satisfactorily.

Primerica Life Policy Coverage 

Primerica only offers term life insurance policies, unlike other companies that offer universal and whole life policies. At Primerica, you can get a policy with a term as long as 35 years with guaranteed insurability up to age 95. 

You don’t have the option of receiving a quote online the way some companies do, you need to discuss your insurance needs with an agent in the company, and they will advise you on how much coverage you need.

Cost of Insurance at Primerica

Several factors like age, gender, location, and health status determine the final cost of your insurance rates. For example, if you work a high-risk job or have high-risk hobbies, you will likely spend more on insurance premiums. 

Examples of high-risk occupations and hobbies include scuba diving, rock climbing, firefighting, construction, mining, and much more. 

Another factor that determines the cost of your insurance is what type of policy you are purchasing. Policies with higher coverage and term period will cost more than policies with limited coverage and short-term periods. Adding riders to your policy could also increase the price of your policy.

Purchasing Insurance at Primerica

The only way to purchase a policy with Primerica is through their agent. There is no avenue to purchase their policy online.

However, Primerica has made the process easier by letting you select an agent close to you via the website. In addition, Primerica insurance is licensed throughout the U.S., so don’t worry about whether you can enjoy their service or not from your location.

Uses for Primerica Life Insurance

There are multiple benefits attached to getting life insurance from Primerica, and we would advise anyone who can afford it to do so. These benefits include;

• Charitable Contribution – the beneficiaries on your life policy don’t always have to be your family member or friend; it can even be a charity organization. With your instruction, your insurer can pay your favorite charity establishment to ensure your philanthropic acts don’t die with you.
• Ease Financial Burden – the death benefit on your policy eases the financial burden caused by your death significantly from the shoulders of your loved one. With this money, they could arrange your funeral, pay off debts, invest, or just take care of the family. 
• Inheritance – just like the point above, this one also illustrates how life insurance policies create a comfortable life for our loved ones after we have passed. Again, you are advised to specify your heir as the beneficiary in your policy, so it does not fall on someone else.

Frequently Asked Questions

We’ve compiled a list of frequently asked questions and answers. These FAQs will help you understand everything you need to know about canceling Primerica life insurance. Let’s check it out!

What are riders available at Primerica?

Primerica offers three riders on their policy – increasing benefit rider, waiver of premium rider, and a child rider. Before you request any of these riders, it is best to discuss which one would meet your insurance needs best with the agent. 

Can I borrow from my Primerica life policy?

No, you cannot. Primerica life policies are term policies, so they do not accrue cash value. On this note, you cannot take a loan against this policy or borrow from your policy account. 

Does Primerica issue payout for death by suicide?

Generally, insurance companies do not pay out for death by suicide. However, insurance carriers are also bound by state laws, so the state they are located in may prevent them from making payouts in such instances. 

If you are contemplating suicide or you know anyone who is, you can reach for support from the National Suicide Prevention Line at any time. Your i

Conclusion

Cancelling your life policy at Primerica is a seamless process that can happen over a phone call or with the click of a button. Whatever reason you have for cancelling your policy is a valid one. However, we would advise you to think long and hard about whether it is the best decision to make with the help of your agent.

Sources

How to Cancel the Primerica Membership or Subscription

Primerica Life Insurance Overview: 2022

Uses for Life Insurance

The post How To Cancel Primerica Life Insurance? appeared first on Insurance BlogX.

After the death of a loved one, it is common for people to lose their bearings. This is especially true when the deceased was the breadwinner of the family. 

Life insurance provides income for the bereaved to find their feet and plan for their life without the deceased in it. 

However, the process of filing a claim is a stressful one, and without the right knowledge, it can drag longer than necessary.

What Is A Death Benefit?

A death benefit is a money an insurance company pays the policy’s beneficiaries when the policyholder passes away. The beneficiaries of a policy are the people you want to receive your money when you die. 

Typically, beneficiaries are spouses, children, and relatives. What your beneficiaries do with the money upon receipt isn’t the company’s concern. It is their money, and they can spend it how they deem fit. 

It is natural for beneficiaries to set aside a part of their death benefit for funeral expenses and perhaps repayment of debts when they die. Then, you can use the rest of the money for whatever the beneficiary deems necessary- donations, investments, or even vacation. 

How Is The Money Paid Out 

Fortunately, you are free to choose how you want to receive the money. There are several options for receiving a death benefit payout:

Annuity

The insurance company deposits the money into an investment account with this payout option. The beneficiaries will receive a portion of the money alongside the accumulated interest until the money runs out.

Retained Assets Account

This payment method is a mix of annuity and lump sum. The full amount is paid into an account that earns interest. What makes the retained assets account unique is that it gives the beneficiary the option of earning interest while retaining access to the full amount of money.

Lump-Sum

This is the most common payment option for receiving death benefit payments; it is so common that some people use it to define a death benefit.

The full benefit is paid out in a single payment as a lump sum in this payment method. You can either request a check or have the money wired directly to your bank account. 

Installments 

Installments work the same way as annuities; the major difference is that installments are not paid from an investment account.

With this type of payment method, the death benefit is received as a fixed amount over a period until the money is exhausted. 

Factors That Could Affect Death Benefit 

There are instances where an insurance company will deny a claim. There are two major reasons why this may happen.

Suppose the policyholder stated that they are 80 years old when registering with the company when older or younger. Or they failed to mention chronic diseases they are suffering from, like diabetes. In such situations, the company has the right to deny your claim.

Incomplete Payment

Another reason insurance companies deny a claim is if the policyholder missed payments before their death. However, most companies will allow you to claim a portion of the death benefit. This amount will be the total value of the policy minus the total amount of missed premiums. 

Cause Of Death

Most companies will deny your beneficiaries their death benefit if you die under certain circumstances. The most common example is suicide.

Another example is if you die while engaging in illegal activities or life-endangering activities like sky diving and bungee jumping.

The table below contains life/annuity insurance benefits and claims between 2018 and 2020. 

Frequently Asked Questions

What Is The Death Benefit In Insurance?

This is the amount an insurer pays to the beneficiaries of a life assurance policy when the insured passes away. Most people will ask to be paid their death benefit as a lump sum; this is why some people define death benefits as a lump sum of money.

How Do You Collect Death Benefits?

If you are a listed beneficiary on a life insurance policy and the insured is deceased, you can go to their insurance company to file a claim and receive their death benefit. 

How Long Does Payout On A Claim Take?

You can’t expect to receive the money to be paid immediately after filing your claim. On average, the payout time on death benefits can range from a week to two months. The time is dependent on how quickly the insurance company can approve your claim.

They will have to verify the policyholder’s death, beneficiary information, and other matters within this time.

What Is The Value Of My Death Benefit?

You would not likely know how much to expect from your loved one’s death benefit. However, you can look at the insurance documents to see how much the policy is worth. 

We would also advise that you contact the insurance company to tell you how much you will receive in death benefits on the policy.

Are Death Benefits Liable To Tax?

Generally speaking, no, they are not. Death benefits are tax-free. However, if your death benefit is being paid from an investment account, you will pay taxes on the interest earned on that account.

Conclusion

A death benefit is the best thing to leave for your loved ones once you have passed away, especially when you are the family’s sole provider. With it, they can lay you to rest in a befitting way and still trudge through life in your absence.

Our honest advice is to purchase a life policy plan of good value and ensure that all the beneficiaries are aware of it. This way, they won’t miss out on their death benefit due to ignorance.

The company may not always reach the beneficiaries when nobody comes to claim. This is due to having outdated or wrong information in their database.

Sources 

What is the Average Payout Time

Life Insurance Death Benefits

How Do Life Insurance Payouts Work? 

The post What Is The Average Payout On Death Benefits With Life Insurance? appeared first on Insurance BlogX.

No. Life insurance policies are not considered a pyramid scheme because they do not require you to recruit people into the company or policy in order for you to earn any money.

This is a question that many people ask themselves when considering the option of life insurance. They wonder if it is a pyramid scheme.

Pyramid schemes are based on recruiting new members, and when this process stops, pyramids collapse. In contrast to them, life insurance relies on people paying an insurance premium in return for receiving money from the company in case they die. The main difference between the two types of transactions is that in the case of a pyramid scheme, the company does not give any value in return – it’s based on getting new members to pay a fee to join a program instead. Some experts say Pyramid schemes are like Ponzi schemes.

Life insurance is a type of risk management product that provides financial protection to the policyholder and other designated beneficiaries in case of the premature death of the insured. It is primarily used as a means to provide for dependents during financial hardships that may arise from an unexpected or sudden death.

There are many misconceptions about life insurance products, such as whether they are too expensive, unnecessary, or scam-like. The truth is that life insurance products can be affordable and cover all types of risks. Pyramid schemes are illegal businesses where money is primarily made by recruiting new members and not primarily by selling goods or services to the public and where recruitment instead pays off for those who get in early on.

Differences Between Life Insurance Scheme vs Pyramid Scheme

Pyramid Schemes are illegal mostly all over the world (Except in some countries). That is not the case with life insurance schemes. Pyramid Schemes are illegal because they are based on a chain of people involved, each of which pays to get the person ahead of them at the top to get paid, hence it’s called a pyramid scheme.

We all know the difference between a pyramid scheme and a life insurance scheme. But what most people don’t know is that they are actually two very different types of financial products.

The life insurance scheme is a good investment where the investor pays a certain amount every month and in the end, his family gets an amount of money as per his investments. Whereas in a pyramid scheme, you pay for somebody else’s investment and get someone else’s money as your return which is not an investment at all. So, let us look at 10 major differences between these investments:

1. Life insurance schemes are insurance policies that are designed to cover the financial needs of people in case they die with insufficient financial provisions.
2. On the other hand, pyramid schemes are illegal organizations that operate on the basis of a hierarchical structure. The first person pays an entry fee to be part of the scheme and recruits two more people under him or her. The second person pays an entry fee to the person below him or her, which is then passed up through the hierarchy until it reaches the top where all profits are made. Pyramid schemes use money from new recruits to pay earlier entrants, with promises that their investments will yield high returns.
3. Pyramid schemes are illegal organizations that operate on a hierarchical basis with promises of high returns for early members – This is different from life insurance schemes which provide coverage for members in the event of something happening to them.
4. Pyramid Schemes are illegal in USA while Life Insurance Schemes have legal status
5. The aim of both schemes is to provide financial security but there is no guarantee for success in both cases.
6. In a pyramid scheme, one has to pay other people to get ahead whereas an insurance policy holder just pays premiums
7. There are fewer people at the top of a pyramid scheme than an insurance policy holder
8. In life insurance schemes, you pay for somebody else’s investments and get someone else’s money as the return.

Can You Sell Life Insurance Schemes To Any Country of This World?

Yes, you can sell life insurance schemes to any country of this world because these countries have the following challenges:

• They don’t have a sufficient number of trained people who can sell life insurance policies.
• They don’t have banks and other financial institutions that would help people to cover their need for insurance.
• The population in these countries is constantly increasing and they lack the funds to provide food and shelter for all of them.

There is a misconception among people in some countries that they can’t buy life insurance because they don’t have enough money or their health condition doesn’t allow them to think about it. But we need to clarify here that time and money are not sufficient for us when it comes to saving our lives.

So, yes, you can sell life insurance schemes in every country of this world!

To sell life insurance schemes, you need to understand the local culture and the way people live.

If you can sell them what they want and not what they need and if you can understand their needs and wants, then you might be able to sell life insurance schemes to any country of this world.

The post Is Selling Life Insurance a Pyramid Scheme? appeared first on Insurance BlogX.

Term insurance is a type of life insurance that provides coverage for a specific period, known as the “term”. If the policyholder dies during this period, the insurance company pays a death benefit to the designated beneficiaries. However, if the policyholder survives the term, the coverage expires, and the policy ends. Term insurance is often used to cover specific needs such as paying off a mortgage, providing for children’s education, or providing income replacement in case of the policyholder’s death. Premiums for term insurance are generally lower than those for other types of life insurance because it only provides coverage for a limited time.

Term insurance works by providing coverage for a specific period, typically ranging from one to thirty years. The policyholder pays a premium to the insurance company, which guarantees a death benefit to the designated beneficiaries if the policyholder dies during the term of the policy.

The death benefit is typically a lump sum payment, and the amount depends on the policy’s terms and the premium paid. The policyholder can choose the amount of coverage they need and the length of the term that best suits their needs.

There are several types of term insurance policies, including:

• Level Term Insurance: This is the most common type of term insurance, where the death benefit and premiums remain the same throughout the policy’s term.
• Decreasing Term Insurance: In this type of policy, the death benefit decreases over time while the premium remains the same. It is often used to cover the declining balance of a mortgage or other debt.
• Increasing Term Insurance: Here, the death benefit increases over time while the premium remains the same. It is often used to keep pace with inflation or other increasing expenses.
• Renewable Term Insurance: This policy allows the policyholder to renew the coverage at the end of the term without having to undergo a new medical exam. The premium for the new term is usually higher.
• Convertible Term Insurance: This policy allows the policyholder to convert the term insurance policy into a permanent life insurance policy without undergoing a new medical exam. The premium for the new policy will be higher, but it provides coverage for the policyholder’s entire life.

Life insurance is a contract between an insurance policyholder and an insurance company, in which the policyholder pays a premium in exchange for a death benefit to be paid out to their designated beneficiaries upon their death. The purpose of life insurance is to provide financial protection and support for the policyholder’s loved ones in the event of their death. The death benefit can be used for various purposes, such as paying off debts, covering funeral expenses, providing for children’s education, or replacing the policyholder’s income. Life insurance policies can be either temporary or permanent, and the premium and death benefit amount depends on the policy’s terms and the policyholder’s age, health, and other factors.

Life insurance works by providing a death benefit to the designated beneficiaries of the policyholder in exchange for regular premium payments. Here is how it typically works:

• The policyholder selects a life insurance policy that meets their needs and pays the initial premium.
• The insurance company evaluates the policyholder’s health and other risk factors to determine the premium amount and the death benefit amount.
• The policyholder makes regular premium payments, typically monthly or annually, to keep the policy in force.
• If the policyholder dies during the term of the policy, the designated beneficiaries receive the death benefit.
• The beneficiaries can use the death benefit to cover expenses such as funeral costs, and outstanding debts, or to provide financial support for their ongoing needs.

There are two main types of life insurance: term life insurance and permanent life insurance.

• Term life insurance provides coverage for a specific period, typically ranging from one to thirty years. If the policyholder dies during the term, the beneficiaries receive the death benefit. If the policyholder outlives the term, the coverage expires.
• Permanent life insurance provides coverage for the policyholder’s entire life, as long as the premiums are paid. Permanent life insurance policies have a cash value component that grows over time and can be used to borrow against or withdraw funds from the policy.

Here are the key differences between term insurance and life insurance:

Overall, the choice between term and permanent life insurance depends on an individual’s unique circumstances, including financial goals, age, health, and family situation. It’s important to carefully consider these factors before choosing an insurance policy.

Choosing between term and life insurance depends on several factors, including your financial goals, age, health, and family situation. Here are some factors to consider when deciding which type of insurance to choose:

Consider how long you need coverage. If you only need coverage for a specific period, such as to pay off a mortgage or provide for your children’s education, then term life insurance may be a better option. If you want coverage for your entire life and want to build cash value, then permanent life insurance may be a better choice.

Consider how much you can afford to pay in premiums. Term life insurance premiums are typically lower than permanent life insurance premiums, but the coverage is also limited.

Consider whether you want your policy to accumulate cash value over time. Permanent life insurance policies have a cash value component that grows over time and can be borrowed against or withdrawn from, while term life insurance policies do not have a cash value component.

Consider how much you want your beneficiaries to receive if you pass away. Both types of policies offer a death benefit, but the amount may differ depending on the policy type and terms.

Consider how much flexibility you want in your policy. Permanent life insurance policies can provide more flexibility in terms of premium payments and death benefit amounts, while term life insurance policies are typically more straightforward.

Consider which policy is more cost-effective for your needs. Term life insurance policies can be more cost-effective for individuals who only need coverage for a specific period, while permanent life insurance policies may be more cost-effective for individuals who need lifetime coverage and want to build cash value.

In conclusion, both term and life insurance can provide valuable protection for individuals and their families. Term life insurance provides coverage for a specific period, while permanent life insurance provides coverage for the policyholder’s entire life and includes a cash value component.

References:

https://www.investopedia.com/terms/t/termlife.asp

https://www.forbes.com/advisor/in/life-insurance/term-insurance/term-insurance-vs-life-insurance/

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Credit insurance is a policy that covers a person in debt against death, disability, or unemployment. In summary, the objective of such policies is to pay off the balance of the borrower’s debt in a circumstance where they can no longer clear it themselves. 

Individuals are offered credit life insurance when they borrow money. This policy is most beneficial to your next-of-kin or the person expected to pay your debt when you pass away or can no longer meet up with this obligation. 

It offers them protection from making any payments towards repaying such debt.

We should point out that credit life insurance is not the same as life insurance. Life insurance differs from credit life insurance majorly based on the purpose of the payout. 

Beneficiaries can use the benefit gotten from life insurance any way they deem fit; however, the payout from credit life insurance is targeted at repaying outstanding debt in the event of your death. 

Protects Joint-Borrower

When taking a loan or getting involved in any form of debt, you will be asked to provide a next-of-kin or guarantor who will take up the debt when you cannot. 

A credit policy will protect your loved ones from bearing the burden of this debt should you die or become disabled. 

Unlike regular life insurance that pays out a death benefit that beneficiaries can use as they deem fit, credit policies are specifically aimed at clearing outstanding debt.

Safeguard You From Unforeseen Tragedies

Credit policies are designed to do more than clear your outstanding debt in the event of your death. Different policies exist to protect you from all manner of tragedies, such as becoming disabled or losing your job.

There is also a credit policy that protects your property from destruction; this could take the form of having your car stolen or your home wrecked due to natural disasters. 

Whatever the case, there is a credit policy to safeguard you from most of life’s unforeseen tragedies.

Easy To Process

The wonderful thing about credit policies is that they are easier to process than regular insurance policies.

Standard insurance policies require medical examinations and other details before they offer you a policy, and you may be denied a policy by the end of the day. Credit policies have less stringent requirements and are less likely to reject giving you a policy.

There are five (5) types of credit insurance policies; four are aimed at individuals, while the last one targets businesses.

Credit life insurance is a policy where your debt is paid off when you die. This prevents your loved ones from bearing the burden of repaying your debt. 

The name of this policy paints a clear picture of how it works; your card issuer will pay you a specific amount over a period if you become disabled. 

Certain conditions may apply, like being disabled for a certain amount of time before you can claim benefit, or there may be a waiting period before the payment kicks in. 

Life is an unpredictable place, such that anything can happen without a trigger. People are laid off from their jobs due to no fault of theirs. Sometimes this happens for reasons beyond their control.

The insured will receive a minimum amount as payment for being unemployed with unemployment insurance. This policy doesn’t apply to people who quit or are fired from their current jobs.

It is also important we mention that this policy may not take effect immediately; you may have to be unemployed for a certain period before the payments flow in. 

We know how to get a loan from financial institutions; depending on the nature of your loan, most institutions will ask for collateral to process your loan request. 

This type of insurance policy typically covers any damage to your property in the event of theft, accidents, and even natural disasters. 

Trade credit insurance targets businesses that offer their services or products to consumers on credit. It protects them from the risk of customers refusing to pay their debt in the event of insolvency. While this isn’t the only event covered by this insurance policy, it is the most relevant. This insurance policy’s nature also gives insight into why it is available to businesses only.

Frequently Asked Questions

Credit life insurance aims to cover the outstanding balance on your debt when you die, protecting your loved ones from paying to repay the debt. 

Credit life insurance is right for you if:

1. You need coverage that declines over time as you clear your debt

2. You cannot purchase regular insurance due to their complex requirements, such as the medical exam

3. The life insurance you qualify for cannot cover the amount of debt you will leave behind 

Conclusion

Credit life insurance is a good investment for anyone who wants to die before repaying all their debts. The issuer will cover all debts left so your family will not have to bear the burden of doing so in your absence. 

Sources 

What type of life insurance are credit policies issues as

 Five types of Credit Insurance

Why you Should Consider Credit Life Insurance

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