I've never had life insurance and just started to get some with SelectQuote. They sent me the application, however, I asked them a question as to how this insurance works. She told me that if I died the day after I am approved for the $200,000 that my beneficiary would get the entire amount of $200,000. To me, that does not sound correct. I would think that I have to put money into this policy before a full amount is cashed in. Anyone can help guide me on this? I am in good health, just trying to get myself in shape if I die so that my daughter could have the money to bury me. Simple as that.
Senior Here and Need Some Answers
- Thread starter julian
- Start date
$200k for a funeral expense policy? WOW... what is your casket lined with? just kidding...
What she's saying is right. If you apply, even on a C.O.D. basis where you send money after approval, and you die the next day after issue your daughter gets paid.
She could also be speaking of a conditional reciept where you send money with the application and that basically insures you from the date of application if you are approved... even if you died during the underwriting process.
For example:
You apply on the 10th and submitt a check with the application.
The company orders the underwriting needs such as a phone interview and/or blood test.
You get examined on the 12th.
If you died right after the examiner left your house, but all underwriting requirements have been met such as the exam, etc. your beneficiary gets paid.
Conditional reciept is sort of a life insurance binder. You are insured from the date of application unless they find a reason to decline you such as problems showing up in the blood work, etc.
What she's saying is right. If you apply, even on a C.O.D. basis where you send money after approval, and you die the next day after issue your daughter gets paid.
She could also be speaking of a conditional reciept where you send money with the application and that basically insures you from the date of application if you are approved... even if you died during the underwriting process.
For example:
You apply on the 10th and submitt a check with the application.
The company orders the underwriting needs such as a phone interview and/or blood test.
You get examined on the 12th.
If you died right after the examiner left your house, but all underwriting requirements have been met such as the exam, etc. your beneficiary gets paid.
Conditional reciept is sort of a life insurance binder. You are insured from the date of application unless they find a reason to decline you such as problems showing up in the blood work, etc.
- 17,048
Your daughter doesn't need $200,000 to bury you.
You are looking for a permenent whole-life policy. You should skip Select Quote which is trying to sell you 10-year term life.
Call a local independent agent that can help you determine if you need a fully underwritten or a simplified issue policy. You should need around $25,000 for what you are wanting.
As an alternative, you can also compare to a pre-paid burial plan at your local funeral home. If that's the real purpose for the insurance, that's often your best option.
Term life insurance is NEVER a good option for final expenses UNLESS you KNOW you are going to die during the coverage term. And if you knew that, they wouldn't sell you the policy.
Also keep in mind that internet sites like Select Quote and the rest can NEVER beat the rates of a local face to face agent even if you do want term. And I think you know which can give you better advice and service.
- Thread starter
- #4
Thanks. They are asking for money upfront with the application and I will be insured until my application and medical is approved. Someone will be coming over to do and EKG and draw blood. The monthly automatic fee from my checking account will be $81.00 per month. I will look around though now that I have a better understanding of how this works. Again, thanks.
- 1,802
Just call Newby.
kwimberl
Expert
That's not entirely correct. G. Gordon described reality pretty well on this.
Do you know what kind of insurance you are getting? I would recommend talking with an independent agent about your situation before you make a final decision.
- 15,319
If you plan on cremation, you can pre-pay for $2,250 and no matter when the time comes, it will be paid in full.
One call and everything is done.
Rick
One call and everything is done.
Rick
- 17,048
If you were budgeting for $200,000...that would be a savings of...$197,750! Wow! Talk about overshooting your target.
