by ensurepune » Sun Nov 23, 2008 11:42 am
I am currently having an insurance cover (life) of 100000 $ where it has costed me mere 270 $ annual premium.problem i faced for this is stringent rules for income proof.
Posted: Tue Nov 25, 2008 11:23 am Post Subject:
Why is that Gary? I'm never had any policys over 200 or 250k, that I had on my husband, but I was planning to kill him then... (just kidding) to my knowledge I've never been asked to prove any income
Because, 100k, 200k even 250k is chump change to life insurance companies. It's a relative insignificant amount of money.
Financial underwriting comes into play with larger face amounts and certainly with $1,000,000 or more.
At that point and above you have to prove to the insurance company why you need that much coverage REGARDLESS of your ability to pay the premium.
For example, a 20 year old male non-smoker could buy a $1 million dollar annual renewable term policy for as little as $18.25 per month.
Even a broke college student could come up with $18.25 per month to pay that premium but the insurance company would never issue the policy just because you're young, healthy and can afford the premium.
Where is the financial NEED for that large of a face amount?
Who suffers a devastating FINANCIAL loss for the death of a 20 year old?
Are there ulterior motives for such a high face amount on a person that young?
Isn't it contrary to normal 20 year old male "bullet-proof" mentality to be concerned with life insurance?
Who's the beneficiary? A 50 year old Cougar?
Now I could make an argument the young person is wanting to protect his/her future own insurable interests and is concerned about the future impact of federal estate taxes on his future children or may need a business loan in the future and the bank may require a collateral assignment of his life insurance to secure the loan.......
...but I'm afraid my "best" efforts would be quashed by the company underwriters and they may, at most, issue a $500,000 policy on a 20 year old.
Posted: Tue Nov 25, 2008 11:41 am Post Subject:
Whoa...I am blown away one dollar an hour for 10 hours worth of work. Thats probaly the financial need right there. Can you imagine?
Posted: Tue Nov 25, 2008 11:57 am Post Subject:
Got it...
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