Category: Life Insurance

Like most people, you probably have many questions about life insurance. Here are some of the most frequently asked questions about life insurance benefits in Oshkosh, NE. 

Life Insurance FAQs

1. What is life insurance?

Life insurance is a contract between an insurer and a policyholder. If the policyholder dies, the policyholder pays premiums to the insurer for a financial benefit, typically a lump sum payment.

2. What are the different life insurance policies?

There are four central life insurance policies: term life, whole life, universal life, and variable life.

3. What is term life insurance?

Term life insurance is the most basic and affordable type of life insurance. It provides coverage for a set period, typically 10, 20, or 30 years. If the policyholder dies during the policy term, the beneficiaries will receive a death benefit.

4. What is whole life insurance?

Whole life insurance is a more expensive type of life insurance, offering more coverage. The policyholder pays premiums for the rest of their life, and the beneficiaries will receive a death benefit if the policyholder dies.

A Western Trail Insurance agent can help you decide if whole life insurance is the right policy for you.

5. What is universal life insurance?

Universal life insurance is permanent life insurance that gives the policyholder more flexibility than whole life insurance. The policyholder can choose how much to pay in premiums and how the death benefit will be used.

6. What is variable life insurance?

Variable life insurance is permanent life insurance that allows policyholders to invest their premiums in different investment options. The death benefit and premiums can fluctuate based on the investment performance.

Now that you know a little more about the different life insurance policies, you can figure out which one is right for you in Oshkosh, NE. If you have questions, a Western Trail Insurance agent would be happy to help.

Everyone thinks about life insurance, but few people really understand all the important things it can provide. It is more than just the death benefit; it can be part of a lifetime financial plan. It offers protection to people of all ages. At Western Trail Insurance in Oshkosh, NE, we offer over 30 quality companies to our customers. We are dedicated to providing the best coverage at competitive prices. We are here to answer your questions, so you can make an educated decision. 

Underwriting

When you apply for a life insurance policy, your application is sent to underwriting. Their job is to determine the risk you pose to the insurer. They will look at your health, your occupation, your medical history, and your family health history. The result of this process will determine if you get a policy and the premium. 

Beneficiary

The beneficiary is the recipient of the death benefit of your policy. You can choose one person, multiple people or an organization. 

Death benefit

The death benefit is the amount that will be paid tax-free to the beneficiary of your life insurance policy on your death. It is the face value of your policy. 

Cash surrender value

The cash surrender amount is the amount you will be paid if you cash in your permanent life insurance policy. How long you have had the policy will determine what portion of the face value you will receive. 

Contestability period

If you die within the first year or two after purchasing a life insurance policy, the insurer can refuse to pay the claim if they find any evidence of fraud.  

Exclusions

Exclusions are reasons the insurer may refuse to pay the death benefit and include lying on your application, omitting information, or dying while committing an illegal activity. 

Contact Western Trail Insurance in Oshkosh, NE with your life insurance questions.