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New Post has been published on http://www.lowestpricetermlifeinsurance.com/index.php/2020/04/21/would-my-life-insurance-policy-cover-covid-19-related-death/

Would my life insurance policy cover COVID-19 related death?

Would my life insurance policy cover COVID-19 related death?

As more Pennsylvanians continue to die from COVID-19, a lawyer is reminding people to take another look at their life insurance policies.

Would my life insurance policy cover COVID-19 related death?

  April 20, 2020

HARRISBURG, Pa. — In most cases, people who have term or whole life insurance already will be covered, which means insurance companies will pay out for deaths related to COVID-19.  However, a local lawyer explains there are some exceptions.  "They're going to at least scrutinize them a lot more," said Scott Cooper, attorney for Schmidt Kramer. 

  Cooper says life insurance companies are getting a lot of life insurance claims right now.  He reminds people with existing policies, to take another look at their paperwork.  According to nerdwallet, Accidental death and dismemberment insurance – which is often called a-d-and-d likely won't cover COVID-19.  That policy usually covers accidental deaths, not illness or disease.  Policyholders who didn't pay their premiums may be out of luck.  That may be a gray area in the time of COVID-19. 

However, if you missed a payment before this pandemic, you might not be covered it just depends on the company.   If an application was incomplete or not truthful, beneficiaries may not get the money.  "If you took out the policy within the last 2 years and passed away, the company will look to see if there was something improper or false about the application," said Cooper.  The attorney has a piece of advice for people who are contemplating buying life insurance.   "Get it now because a year or two from now, premiums may be a lot higher."

  Just remember, people who buy life insurance today may not be covered if they were to die from COVID-19 complications.  Cooper also says if you have a pending application make sure you still go through with it because some companies are still processing the applications.

  Mike Sheehan

[yourlifeinsurance411]

New Post has been published on http://www.lowestpricetermlifeinsurance.com/index.php/2020/04/10/heres-why-you-shouldnt-wait-to-set-up-your-will-or-life-insurance/

Here's why you shouldn't wait to set up your will or life insurance

Here's why you shouldn't wait to set up your will or life insurance

"Whether you are 18, 88 or 188, it doesn't matter. You should be able to tell people what your wishes are in case you can't tell people yourself."

"When people usually ask me when the right time is to set up your estate, I usually say it was yesterday," said Chas Rampenthal, general counsel for Legal Zoom. Getty Images 

April 9, 2020

By Callie Patteson

When it comes to writing a will or setting up your life insurance policy, it is easy to say, "I'll do that tomorrow." But what if tomorrow ushers in an emergency like the coronavirus pandemic? A living will and a life insurance policy is something every adult should have in place in preparation for the worst-case scenario.

But according to a 2020 study done by Caring.com, a site with information about caring for seniors, only 32% of adults say they have a will — a 25% decrease from the number of people in 2017.

Caring.com CEO Jim Rosenthal finds these numbers troubling. "It's not the most challenging thing out there," he told TODAY. "Anything we can do to nudge people in an empathetic way to start this process is helpful."

  To help with your estate planning during this pandemic, TODAY spoke to experts to better understand the ins and outs of wills and the different types of life insurance.

What is a will and what makes it valid?

When it comes to estate planning, there are two key terms to define: a will and life insurance.

A will is a legal document that allows a person to express his or her wishes to family members or loved ones in cases when that individual is unable to express them, like after death.

For the will to become a legal document, it must be signed in front of and initialed by two disinterested witnesses — people who will not benefit from the contents of the will. A notary is not required for a will to be valid, but many include a self-proving affidavit in their wills that proves the witnesses signed the will in the presence of a notary. This is not required for a will but prevents witnesses from testifying in court if there is a question of the validity of the will.

  What is life insurance? What's the difference between group, whole and term life insurance?

There are three types of life insurance: group, whole, and term.

Group insurance is affordable and very convenient since it is usually included in an employee benefits package. Since this type of insurance is dependent on your job, it most likely will not follow you during a career change. It is often double your salary, or around $250,000, so you'll want to determine if that's enough money for your family to survive on should you pass away. If you want coverage exceeding that amount, it shouldn't be the sole option for you and your family.

Whole life insurance is much more costly as it covers the individual for a lifetime (as long as he or she keeps paying the insurance premiums) and offers cash value that can grow over time. It can be complex and usually requires the help of a financial adviser when purchasing. Coverage for whole life insurance varies; the world record for the most expensive policy is $201 million. The average premium for $500,000 worth of coverage through insurance company State Farm is $561.59/month.

Term life insurance is the most affordable option for new families or young adults. With smaller premiums than whole life insurance, term life insurance covers a predetermined amount of time, such as 20 years, instead of a lifetime. Unlike whole life insurance, term life insurance only pays a death benefit during the period specified and is really for protection only (a family, for example, could buy a policy that covers the period that sees their children through college and their final mortgage payment). According to life insurance agency Haven Life, which is backed by MassMutual and provides term life insurance that can be purchased online, a healthy 35-year-old woman could get $500,000 worth of coverage for about $20 a month for 20 years.

    "Term insurance — in particular for young people who are just starting and having a family — is incredibly inexpensive," said Bob Owens, CEO of Owens Group Insurance in New Jersey. "Because the likelihood of a 28-year-old dying, even in the coronavirus time, is pretty low. Buy $1 million for a few hundred dollars a year — why wouldn't you have that for your family from the jump?"

Is there a right time to set up a will and life insurance?

"The right time is as soon as you have financial dependents," said Ben-Zvi. "For a lot of people, that does mean when they first have kids, but there could be other financial dependents as well — if your parents depend on you if a niece or nephew or if somebody else feels their life is depending on your income."

However, for some, waiting for financial dependents is not soon enough.

"When people usually ask me when the right time is to set up your estate, I usually say it was yesterday," said Chas Rampenthal, general counsel for Legal Zoom, a legal technology company that allows customers to create documents such as a will without necessarily having to hire a lawyer.

    According to Rampenthal, short-term natural disasters tend to remind people of this really important thing that they have been putting off.

"Making a will and making an estate plan is something you should be doing no matter what," he said. "Whether you are 18, 88 or 188, it doesn't matter. You should be able to tell people what your wishes are in case you can't tell people yourself."

How can I start estate planning while social distancing?

Before starting to settle your estate, it is important to begin talking to loved ones about the plan you would like to leave in place. From there, gather any documents you need to set up your will or life insurance to speed up the process.

Some states will allow adults to sign legal documents without witnesses immediately present through a self-proving affidavit, however, it still requires the presence of a notary. Even with social distancing, Rampenthal says you don't have to avoid a notary or disinterested witnesses.

"Typically, you have to sign these things in ink, find a witness and they watch you sign it in ink and they sign it; or the notary has to watch you sign it, witness it and stamp it," Rampenthal said. "Now we are finding there is a rise in online notarizations or remote notaries — not just electronic, there is a difference. A remote notary is someone who can do this over the web, over video and they can watch you sign it and do an electronic notarization of that document."

Several states including Colorado, Connecticut, Florida, Illinois, Iowa, New Hampshire, New York, North Dakota, Vermont, and Washington have approved temporary remote notarization, while Alabama has approved video notarization.

For states that don't have electronic notarizations, there is still a way to practice social distancing and make these documents sound by having a mobile notary or witness keep his or her distance, according to Rampenthal.

"They don't need to be 1 foot away from you while you sign; they just need to be watching while you sign."

  What happens when you apply for life insurance?

When purchasing life insurance, the first step is to pick the policy that is right for you based on price and length.

The second step is to apply for insurance. Haven Life allows customers to fill out the application online, which consists of answering questions about age, health, lifestyle and medical history.

Some insurance companies will then require a phone or in-person interview with an agent to confirm the contents of your application. Additional questions about hobbies, income and net worth will most likely be asked.

Many customers will then have to take a medical exam to finalize coverage and the insurance rate. A technician will come to your home or place of work to take basic measurements, similar to a physical, including blood pressure and a blood sample.

                Mike Sheehan

[yourlifeinsurance411]

New Post has been published on http://www.lowestpricetermlifeinsurance.com/index.php/2020/04/09/as-a-single-mom-life-insurance-is-one-way-i-say-i-love-you-to-my-daughter/

As a single mom life insurance is one way I say 'I love you' to my daughter

As a single mom, life insurance is one way I say 'I love you' to my daughter

Leah Campbell

  The author is not pictured. 

MoMo Productions/Getty Images

Just a few months shy of 30 years old, my daughter was placed in my arms. I hadn't given birth to her. I hadn't even been looking for her. Instead, she'd fallen into my life rather miraculously. 

I was diagnosed as infertile at 26 years old; still young, single, and under the mistaken impression that I had at least a decade to figure out my future parenting plans. I knew I wanted to be a mother, but I hadn't believed there was any rush up to that point. 

The years that followed involved a lot of heartbreak. Failed IVF cycles and broken relationships that couldn't withstand the pressure of my urgency toward motherhood. Eventually, I decided to pursue my foster care license. I would take in the pre-teens and teenagers less likely to be adopted by anyone else. That was where my heart was pulling me. 

But then I was randomly introduced through a coworker to a pregnant woman who had been having a hard time. When she heard I was getting foster licensed, she asked me to take her baby. Just like that. Within 10 minutes of being introduced to me. 

And I said yes. 

Adopting my daughter and becoming a mother

The whole thing was a whirlwind. She was due to give birth in a week and I was in no way prepared for a newborn. I didn't have money saved for maternity leave or a single item to bring this baby home to. But I made it work. With the help of friends and family, I brought my daughter home exactly seven days later. And I knew my life would never be the same. 

I was head over heels in love with this little girl from moment one. I didn't even mind the late-night wake ups, or the way my nesting (painting her nursery, putting together her crib, organizing our lives — the things most mothers have nine months to handle) had to take place while she was sleeping, when I should have been doing so myself. Every part of my being was orbiting around her. 

Getting life insurance

And that was why I prioritized getting life insurance as soon as her adoption was official four months later. I didn't have a ton of disposable income (years of mounting medical bills and the time I took off to be with my girl made sure of that). And the truth was, the guardians I had chosen for my daughter made far more money than I likely ever would. I also knew my family would never let her want or need for anything in her life, no matter where she might land if something were to happen to me. 

She would be taken care of. There was never any doubt about that fact. 

And yet, life insurance still felt so incredibly important to me. It felt like my way to show my daughter that, no matter what, I was always thinking about her and her future. 

That she was always mine and mine alone to take care of, from the moment she was placed in my arms. 

  Life insurance would provide my daughter with a nest egg

Right now, my will designates a few potential guardians for my daughter. I changed it to reflect these options when she was a few years old, after it became clear that life circumstances might alter an individual family's ability to take her at any given time. 

The families I selected are all people who love me, love my daughter, and know and love each other — so much so that I genuinely do trust them to decide where the best home for her might be should something happen to me. And I know that no matter what, she would still have each of these families in her life. She would still be surrounded by love if I were gone. 

She truly does have a village to take care of her if it ever comes to that.

But because of the term life insurance plan I prioritize paying into every year — I pay $200 annually for a $100,000 policy — she'll also have a nest egg of money to help with college expenses or her transition into adulthood if I'm not around to help her myself. That money wouldn't be everything; it wouldn't be her mother. But it would be the reminder that her mother loved her and planned for her future. And that matters to me. Just as I believe it would matter to her. 

I obviously hope that nothing ever happens to me, and that I remain on this earth to guide my daughter through all her biggest milestones still to come. But as a single mom, I don't have the luxury of leaving that up to chance. So I prioritize life insurance and having an up-to-date will, even when funds are tight, because I want my daughter to know her well-being was always my biggest concern. 

In every choice I've made since the day I was first told she'd be mine.

  Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

              Mike Sheehan

[yourlifeinsurance411]

New Post has been published on http://www.lowestpricetermlifeinsurance.com/index.php/2020/04/01/life-insurance-will-likely-cover-coronavirus-deaths-with-a-few-exceptions/

Life insurance will likely cover coronavirus deaths with a few exceptions

Life insurance will likely cover coronavirus deaths, with a few exceptions 

Posted Mar 31, 5:26 AM

(Greg Garrison/Advance Local)

By Nerd Wallet

Thousands of people worldwide have already died from COVID-19, the disease caused by the novel coronavirus. For those who have life insurance, in almost all cases, they are covered, and insurance will likely payout for deaths from COVID-19. There are a few exceptions, according to representatives from life insurance companies and industry organizations.

Potential exceptions

Traditional life insurance policies, such as whole and term life, likely cover deaths from COVID-19, according to spokespeople from the industry research group LIMRA, State Farm and Farmers New Life (part of Farmers Insurance).

  However, there are a few exceptions. For example, an insurer might deny a claim for a coronavirus death if the policyholder:

Submitted an inaccurate or incomplete application. Claims can be denied for reasons like not disclosing travel plans or lying about weight or income. If you die within the first two years of coverage, an insurer generally examines the claim and initial application more thoroughly. Still, a company can refuse to pay a claim if false information is found on the application even after the two-year life insurance contestability period ends. When filling out an application, take your time, be truthful and ask questions if you don’t understand what is being asked.

Didn’t pay insurance premiums. If your policy lapses for nonpayment and you die before the policy is reinstated, your beneficiary usually won’t receive a payout. When a premium payment is late, life insurance companies often offer a grace period of 30 or 31 days. Your coverage will continue as long as you pay the insurer during this time. Insurers may extend this grace period during the coronavirus pandemic — some state regulators are requiring it. If you’re having trouble making payments, contact your insurance company before your premium is late. Otherwise, your insurance coverage will end until you apply for reinstatement and your insurer agrees. To qualify for reinstatement, you may need to prove that you aren’t a risk to insure.

Bought only an accidental death policy. Accidental death and dismemberment insurance, or AD&D, is designed to cover accidents. It doesn’t payout if you die of illness or disease. Sometimes AD&D coverage is added to a standard life insurance policy as a rider. In that case, the underlying traditional policy would still pay out for death from COVID-19.

How to file a life insurance claim

After a policyholder dies, the beneficiary will need to file a life insurance claim by following these steps:

Obtain several copies of the death certificate.

Contact the policyholder’s agent or the insurance company for claim paperwork.

Send in the required documents with a certified copy of the death certificate.

After submitting a claim, the beneficiary can generally decide whether to receive payments in a lump sum or installments.

Other life insurance policies

People who are employed when they die may have a group life insurance policy through their company. Usually, the employer will contact the beneficiary upon the policyholder’s death, but you can also use the process above to claim if you know the insurance company’s name.

The Social Security Administration may also provide survivor benefits for spouses, minor and disabled children, grandchildren, parents, and ex-spouses.

For more information about COVID-19, visit the Centers for Disease Control and Prevention website.

Mike Sheehan