It can be a truly daunting experience for anyone who is looking to purchase California term life insurance. Common in many industries, insurance is no exception; you will find the use of words that are defined in a way that is much different from the common or traditional definition. Because California term life insurance has some of its own vocabulary, it would be extremely beneficial for anyone looking to learn more about their policies to conduct some research and education on their own to make the process a lot less intimidating and a lot more clear. There are a lot of terms and vernacular that can potentially be unfamiliar and confusing to anyone buying term life insurance for the first time.
Here is a brief explanation of some of the more widely used terms.
Term Life Insurance Terms:
Beneficiary ? The beneficiary for a term life insurance policy is whatever person has been designated by you to receive whatever benefits are outlined in the California term life insurance policy upon your death. You can designate that your policy benefits be dispersed among several beneficiaries, a single beneficiary or even a charity if you wish.
Proposed Insured ? As it relates to the purchase of California term life insurance, the proposed insured is the person who is actually applying for the coverage. Learn more about California term life insurance at http://www.equote.com/li/californiatermlifeinsurance.html.
Attained Age ? Some term life insurance companies used the attained age as a means of determining the age in term life insurance premium calculations. This method actually uses the actual age in years of the proposed insured person. Months are not considered when it comes to arriving at the attained age for a proposed insured person.
Nearest Age ? The nearest age method when it comes to determining age for a California term life insurance actually takes months into account by looking at whether the proposed insured person is closer to their last birthday age or their next birthday.
Premium Mode ? The term premium, as it pertains to term life insurance, is the amount that is charged by a life insurance company for a California term life insurance policy. The premium mode, on the other hand, relates to the frequency in which the insured pays these premiums. The total annual term life insurance premium tends to be somewhat higher when the insurance payments are spread out over a year instead of paid in a single lump sum. If you choose to break your annual premium into two or four payments, you will probably have to pay an extra couple of dollars per payment. Some insurance carriers may also charge a bank fee; so familiarize yourself with possible fees before making these decisions.
Coverage Amount or Face Value ? This 'coverage amount' or 'face value amount' is the initial dollar amount that is chosen for the policy coverage for your California term life insurance policy. If you buy a term life insurance policy for $250,000 for example, that is the coverage amount or the face value, which is the amount that will be paid out to the beneficiaries that you have designated upon your death. Visit http://www.equote.com/li/termlifeinsurance-quote.html to learn how you can get a no-obligation quote for California term life insurance.
Guidelines for Underwriting ? Underwriting guidelines are used by insurance companies to determine how to base their term life insurance coverage. These guidelines include many factors about your lifestyle, including your health and hobbies. Criteria for underwriting guidelines when it comes to California life insurance also typically includes age, gender, use of tobacco, weight and height, history of heart disease, diabetes, cholesterol, blood pressure and valve replacement in your family, your driving record, occupation, service in the military, any foreign travel or foreign residency and any felony or criminal activity.
There are many different bills that ensure surviving members of those who serve our country in the military will be taken care of with financial benefits. However, it is still a good idea to take out a separate policy to ensure that payments will be sufficient as some of the benefits only cover household goods, personal needs (the basics) and some funds are only allocated to hardship cases. All the bills are dependent on different criteria such as if the individual was killed in combat or was killed from an illness or accident incurred from a past service. Indeed, to fully protect your family financially, taking out a separate simple term life insurance would help supplement any military benefits you would receive.
Each military policy is different, and low cost service members? group life insurance (SGLI) policies are quite common. However, some of the military group member policies have a limited face value of about $400,000.00. You do not want your family to come up short in the event of your untimely death. The average military family income is sometimes barely enough to cover the basic bills. Term life insurance would be the most cost effective way to build a financially secure future for your family.
Deceptive Sales Practices and ?Red Flags?
Unfortunately, just as the elderly are a commonly targeted group for fraud, military personnel are also often victims of deception. Because of the various benefits and discounts often given to military personnel, many who serve do not question services that they are offered. After all, one of the key words in the military is ?honor? and of course it is common practice not to question orders (unfortunately, that has a tendency to sometimes transfer to other areas of life). The following is a list of deceptive sales practices of which to be cognizant:
? Solicitation of insurance policies as ?investment? or ?savings? products sold as or with savings or investment products.
? Non-military personnel posing as financial counselors or advisors on veterans? benefits.
? Non-military or former military personnel acting as investment advisors in a group or classroom.
? Pressure to rush through the application process, to complete an allotment form or to authorize withdrawal of funds from your bank account for the purchase of a life insurance policy.
? Agents selling on military bases without proper authorization from base solicitations officer or the Department of Defense. When in doubt it is always best to check credentials.
? Agents selling without a valid license from a state insurance department.
? Delays in receiving a copy of the contract.
When you feel any of those ?red flags? go up, it is probably best to leave the situation. If purchasing a separate term life insurance policy is something you and your family are seriously considering, it is important to make sure you go with a carrier that is ?A? rated. Your best bet is to find a reputable broker who can advise you properly. If you wish to add ?war risks? onto your policy, make sure you are familiar with the regulations set forth by the carrier. Some stipulate that your benefits will only be paid if you purchase the policy before you are given orders of deployment.
Making Your Service Count
Members of the armed services can be deployed on short notice, leaving little time to address their personal or business affairs. Be sure that your spouse and children are covered and financially secure, because life as a member of the armed forces is met with great unpredictability. By ensuring your family is properly covered you will be sure to serve them as well as you have been serving your country.
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