What Does Insurable Interest Mean on a Life Insurance Policy?
People often have many questions about life insurance policies because of how intricate and complex these policies and contract can be. One of the most popular questions that many people have when it comes to life insurance is what insurable interest means or refers to within the terms and context of a life insurance policy. Insurable interest refers to those who are potential beneficiaries with a vested interested in the life, rather than the death, of the person for whom the life insurance policy has been filed. The individual(s) defined as insurable interest in these cases are those who will suffer, either emotionally, mentally, financially or otherwise, should the person who is applying for whom the policy is applied die. The reason this provision was put into place was so random people cannot purchase life insurance policies for strangers and collect the life insurance payout when the person passes on in death. Insurance companies would not be able to stay in business very long if they were constantly paying out multiple life insurance policies on a single person, especially if those insured were elderly or facing imminent death. This clause can also help to prevent people from taking out life insurance policies on someone and then acting in specific ways to cause or to hasten that person’s death.
If you purchase a life insurance policy for yourself, it is often assumed that you have insurable interest and that is why you are purchasing the policy since the individual cannot collect their own life insurance payout when they are deceased. If you are purchasing life insurance for another individual, most often you will have to prove that you are to be considered insurable interest by the insurance company. That is, you need to demonstrate your relationship to the individual for whom you are purchasing the life insurance policy. You need to have a sufficient interest in the individual, such as specific and close relation, marriage or monetary interest from a joint business venture. The individual for whom the policy is put in to place, essentially, need to be worth more to those who qualify as insurable interest alive rather than dead.
Most life insurance policy companies will require insurable interest and some of the most common examples of insurable interest include children, spouses, parents, business partners and other such groups of people. As time goes on, more and more life insurance policy providers are becoming increasingly liberal and loose in relation to their definitions of insurance interest. However, interest in the individual or whom the life insurance policy is being drafted still needs to be proven. When investigating different life insurance policies, it is important to first discuss your specific types of insurable interest with the representative that is helping you. If the company does not accept your situation and personal examples of insurable interest, there is no reason to go through all the paperwork and physical exams required. It is important to remember that the person needs to be established as insurable interest when the policy is filed, not at the time of the person’s loss or death.
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two groups of people: (1) those who don’t think they can afford insurance and (2) those who don’t think they need it. Obama would induce those in group (1) to buy insurance by making it affordable, mostly by repealing the Bush tax cuts for the wealthy and putting the money into health-insurance subsidies. Clinton’s plan would try to cover both groups by forcing them to buy insurance. For those who don’t think they can afford insurance, it has to address the very same problem as …
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Susan Duey represents, car insurance and life insurance marketplace which connects consumers with insurance providers who will help you develop a solid insurance plan. For more information please visit What Does Insurable Interest Mean on a Life Insurance Policy?
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Posted by American Car Insurance on September 23rd, 2009 filed in Death Insurance | 18 Comments »
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September 23rd, 2009 at 9:50 am
¤ø„¸¨°º¤ø„¸¸„ø¤º°¨¸„ø¤º°¨
¨°º¤ø„ Ron Paul & Obama „ø¤º°¨
¸„ø¤º°¨ Illuminati `°º¤ø„¸
¸„ø¤º°¨ agents ¨°º¤ø„¸ ¸
BUSH = OBAMA = ILLUMINATI
September 23rd, 2009 at 10:28 am
he just has been
September 23rd, 2009 at 1:16 pm
we can tell you get all your information from the obama ads
September 23rd, 2009 at 10:04 am
Start with his employer. That is an easy contact. Then, you will have to search his apartment to find more info. Also, try checking his phone bills and bank accounts. If he was paying a premium, it would show up in his bank records or credit card statement.
September 23rd, 2009 at 10:04 am
There is really no difference between the two. They are both life insurance. The words "accidental death" is to entice the consumer to purchase it. It's like saying "Extra Special Life Insurance Just For You." lol.
This is how life insurance works:
You pay premiums into the policy for a certain amount of coverage. If you add "Waiver of Premium" rider to it, this will allow you to use some of the face amount in case you become disabled. If you die (natural or accidental), your beneficiary will get the face amount. If there is cash value in the policy, this will be kept by the insurance company (kind of sucks since you're the one who paid for it).
September 23rd, 2009 at 11:21 am
Accidental Death Insurance provides very limited protection for the cost. You would be much better served purchasing a Term Life Insurance Product for the money. I advise that you sit down with a life insurance agent or financial planner that represents various companies so that they can run a Financial Needs Analysis (a review to determine how much coverage you need) and then provide you with a few options and the costs. I would also have them review if you have sufficient coverage to protect your income, i.e. Disability Insurance.
I hope this helps. Good Luck!
September 23rd, 2009 at 6:05 pm
Obama ROCKEd the clintons, and shat on the McCain camp – This man is made. PRESIDENT BARACK OBAMA !!
September 24th, 2009 at 1:08 am
Rent it out and Negative Gear it. You will get some great tax deductions and if anything reduce your yearly taxable income!
September 24th, 2009 at 7:22 am
why cant i see the video
someone want to chat jv
September 24th, 2009 at 9:20 am
It’s “voluntary” slavery!
PETITION :
rallycongress-com/constitution al-qualification/1244/stop-oba ma-constitutional-crisis/
September 24th, 2009 at 6:45 pm
Reality Check: Barack Obama has not even been inaugurated as president yet
September 24th, 2009 at 9:15 pm
Google “Hillary Backers Decry Massive Obama Vote Fraud”
Obama and his Chicago thugs know how to steal an election!!
Fraud intimidation undermining!! don’t let it happen again on Nov 4th!!
September 24th, 2009 at 6:13 pm
suzeq1206, Home insurance covers lots of different things. I'm not familiar with all the fine print of my homeowners policy, but my home insurance agent is always helpful. Try contacting your agent or a agent in your city. http://www.americaschoicetoday.com/Home-Insurance.html They should be able to help you.
September 24th, 2009 at 9:40 pm
You're right about the betting part but the actual premium formula is not that simple. The premium is based upon your age, gender and health conditions. The insurance companies use a table to figure the rates. For example, a 20 year $150,000 term for a 30 year old non-smoking male will run around $20-$25 per month, depending upon the company. The same person will spend around $90 – $100 per month for a Universal Life $150,000 policy.
September 25th, 2009 at 6:18 pm
September 25th, 2009 at 7:40 pm
Contract law dictates how life insurance proceeds are distributed. This is cut and dry.
With no will, his state's intestacy laws will govern how his estate is distributed. Just search his state of residence and "intestate law" to find out what this is. Intestacy varies wildly state to state. You may want to get the help of a probate attorney who is familiar with his state's laws on this one.
September 26th, 2009 at 5:50 am
I am not sure about alcohol exclusion and certainly if it is excluded somehow then they would need proof that it was the cause of death.
Furthermore an accidental death policy is frequently issued on a gauranteed issue basis with no underwritng questions, frequently part of a company benifits schedule.
if the benifit is substantial you would be wise to find an attorney that would take the case on a percentage basis.
September 26th, 2009 at 8:15 pm
fanostyx,
Yeah maybe you’re right… well, I just took the liberty to watch all of McCain’s ads and after much careful consideration… I’m still going to vote for Obama. Close call though.
By the way – I caught Styx live a couple of weeks ago…. still rockin’!