Reader’s Question:

Who are the key parties involved in life insurance in Oklahoma? I’m just curious because the life insurance agent here in Oklahoma City, OK seemed to describe a lot of people involved in my life insurance.

Ewan

Oklahoma City, OK

Your life insurance agent in Oklahoma probably tries to describe to you some key terms which will help you understand your life insurance policy in Oklahoma City, OK.

Life insurance policies are controlled and regulated by the insurance department of each state and there might be some technicalities involved when it comes to coverage and claims. If you do no take time to understand your policy very well, there might be some confusion and difficulty when claims need to take place.

To get to the basics, you need to get to know some terms. Your life insurance agent, the life insurance company, and you will be the first three directly involved when you purchase your life insurance policy. Selling and selecting the products will involve these three parties. Once you have already decided which life insurance product suits your budget and your needs, you need to get other people involved in your application. These will be you and your beneficiaries. Life insurance beneficiaries are the people that gets the death benefit when you die.

After submitting the life insurance application, you will then be required to undergo a medical examination. The life insurance company will involve have an accredited doctor to check on your medical condition. Some personnel in your life insurance company will get to verify some data in your life insurance application. When the transaction is closed, the life insurance contract would only involve the most important parties: the policy holder/ insured and the insurer. Secondary parties involved in your life insurance policy are the ones that have no “say” to the contract. This would refer to the beneficiaries.

Tags: life insurance leads, life insurance application

Reader’s Question:

Our eldest son is considering the purchase of a permanent life insurance in Tulsa, Oklahoma OK and I think somebody has recommended he look into a Universal Life Policy. I think my present life insurance is working fine, how can that be different from my whole life?

Genie

Tulsa, OK

Glad to hear that your whole life policy has lived up to expectations as most people I know complain about theirs. Although I do not have the betails of your current policy, I should tell you that universal life insurance is an offshoot of whole life. Your son should get together with your agent in Tulsa, Oklahoma OK and get all the details of a universal life insurance policy.

Flexibility is always the key to a good universal life insurance policy. Unlike whole life policies offered by most insurance companies in OK, universal policies allow for the increase or decrease of the death benefit. This can be true of the premium amount which you might need to pay. The policyholder will be responsible for maintaining the cash value of the universal policy for as you know, with whole life the premium is fixed at inception but not with universal life policies. The policy holder therefore will have some flexibility with the premium payments.

The cash value of universal life is linked to the policies interest rate which has the potential for greater growth than with a whole life policy. With this type, cash value is determined by the performance of the carrier’s operations.

Universal life has many tax advantages also which you might find attractive. At the outset, you find that the premiums are greater than the cost of insurance plus you’ll have the surplus yields tax-deferred cash value. Remember too that the premiums were paid with after-tax income and usually the growth is not taxable. This advantage also applies to any loans against a universal life policy which you might make.

James, if your son sees benefits in flexibility, he should look into universal life coverage. Again, your agent will have all the details.

Tags: life insurance, universal life insurance, whole life insurance