Q: How can I receive a quote for key man insurance? Is it free?
A: You can get obtain a free quote directly from the website.
Q: How do I choose the best life insurance policy?
A: The first step is to make sure your insurance policy meets your primary goals and objectives. Determine what level of protection you need, and how many people need to be covered under the policy. Every person’s goals are slightly different, so take the time to address all of your specific needs and goals.
Q: What exactly is keyman insurance?
A: This type of insurance is also known as key man insurance, key woman insurance or business life insurance. Key man insurance is purchased by a company to protect the company against the loss of a key employee or set of employees. If a covered employee dies, the business is compensated for a certain amount and can use these funds to cover the costs of replacing the employee, pay off debts, pay bills and expenses, and even create a salary arrangement for a surviving spouse. Investing in key man insurance also makes the company more attractive to investors and creditors because it serves as proof of stability.
Q: How do I know which health class I qualify for?
A: During the underwriting process, the insurance company will review your health and medical history, hobbies and lifestyle issues that may affect the risk that you are injured or need to apply for a claim. Determining which health class you qualify for is an important step when applying for life insurance. Each company has its own criteria for defining health classes, so you will need to review all the details and be as honest as possible about your current health status. Remember that the underwriter will be reviewing your medical records during the application review process.
Q: Will a pre-existing medical condition affect my rate? What are my options?
A: Medical conditions may or may not affect your life insurance rate, and in many cases, having a medical condition simply means you won’t qualify for an “advertised rate” but may be eligible for a different rate. If you have a medical condition, we encourage you to call our offices to find out which insurance company can offer the most competitive rate.
Q: How long does the insurance application process take?
A: The application process typically takes between 4 to 8 weeks to complete. After the application is received and the insurance exam is completed, the application goes to underwriting. At this point, the insurance company will review physical results and medical history, and may request a copy of your medical records. After the entire file is reviewed, the insurance company will approve or deny the application within 5 to 7 business days.
Q: How do I know that I’ve chosen the right insurance company?
A: Check the company’s financial ratings through AM Best, Moody’s, Fitch and Weiss Research or Standard & Poor’s. You can also contact us for a list of financial ratings.
Q: What are the exclusions of coverage for this type of insurance?
A: You will be under a “contestability period” for the first two years of your insurance policy. This contractual clause protects the insurance company from fraudulent and misleading statements, and the insurance company will thoroughly investigate all death claims for fraud made by deceased applicants. If the insurance company can prove that the applicant lied or committed fraud, the claim will be denied. In the case of suicide, this provision states that death claims because of suicide will also be denied within the first two years. The policy exclusions can vary by insurance company, so read your policy carefully for specific details.
Q: How do I send payments, and how often?
A: You can make a payment with your application or wait until the insurance company approves your policy. If you pay with your application and all policy conditions are met at the time of application, you will be covered during the underwriting process. If you don’t send a payment with the application, no coverage will be in effect.
You can pay in one of four ways: annually, semi-annually, quarterly, or with a monthly bank draft. Costs vary depending on the insurance company, and you may incur a fee of 2 to 6 percent depending on the type of payment method you choose.
Q: Does the insurance company have the right to cancel my policy?
A: No. A life insurance policy is a unilateral contract so it cannot be canceled by anyone other than the policy owner or the insured individual. The coverage remains in effect as long as you pay your premium on time.
