Life Insurance Policy Owner

What is a life insurance policy owner?

The owner of a life insurance policy is the person or entity that pays the premiums on a life insurance policy and has the rights of ownership to the policy.

The owner is responsible for paying premiums, managing the insurance policy, choosing the beneficiaries of the policy, and handling the oversight of policy ownership.

The owner may or may not be the person insured by the policy.

Learn more about being an owner of a life insurance policy.

Can I Buy More Than One Term Life Insurance Policy?

Yes, life insurance carriers may allow you to own more than one term life policy.

Over time your need for life insurance may grow, and life insurers understand that one life insurance policy may not provide for all of your financial security needs for your family.

Since term life insurance offers coverage for 10, 15, 20 or 30 years, owning more than one policy can provide you with the protection you need for various lengths of time.

To learn more, here's an article for further review - "Can I Buy More Than One Term Life Insurance Policy?"

Where should I keep my life insurance policy?

Your life insurance policy is evidence of your coverage to be left your your family (beneficiaries).

Keep your life insurance policy in a secure place that is fire-proof, such as a bank safe deposit box.

Keep a copy of your life insurance policy at home, along with important communications from your life insurance company and receipts or copies of your premium payments to the insurance company.

Make sure your beneficiaries know how to make a claim on your life insurance policy upon your passing, or understand how to contact the insurance company in the event of your death.

Who Should Own Your Life Insurance Policy?

Are you considering the purchase of a life insurance policy?

If so, one of the choices you will make when buying your policy is who will be the owner?

This may sound like a simple decision, you just name yourself as the owner of your life insurance policy.

But, what if you are a grandparent buying life insurance on your grandchildren? Maybe you'll want to make the parents of the children the owners, in case you are not alive to continue making payments before the grandkids are grown.

In addition, many seniors may want to make their adult children the owners of their life insurance plans, since the kids are probably the beneficiaries, and they can manage the payments of the life insurance policy premiums, in case the senior (you) purchaser of the life insurance becomes disabled, or unable to manage their financial matters.

Learn more about who should own your life insurance policy

Parties to a Life Insurance Policy

Who are the parties involved in a life insurance policy?

A life insurance policy is actually a life insurance contract between the insurance company and the owner of the life insurance policy.

The owner of the life insurance agree to pay a premium to the insurance company in return the insurer agrees to pay out a death benefit upon the death of the insured person. The recipient of the death benefit would be the person or persons named in the life insurance policy as beneficiary.

The parties to a life insurance policy include the insured person, owner of the life insurance policy, the life insurance company, the primary beneficiary and the secondary beneficiary.

What is a Life Insurance Policy?

A life insurance policy is an agreement between the insurance company and the insured person who owns the life insurance policy.

The insurance company agrees to pay out a death benefit upon your death, to the person you choose to receive the money (your beneficiary), and in return, you agree to pay a regular premium payment to the insurance company for the life insurance coverage.

Many people choose to buy life insurance as a way to replace their income for their family in case they die.

For instance, a father who works to provide for his family may purchase life insurance to leave to his wife in case he dies while the children are young and still at home. The money from the life insurance policy usually goes to your beneficiary free from any federal income tax. And, your beneficiary can use the money for any reason, which may include to pay the monthly bills, pay for your funeral, pay off the home mortgage, or provide for your child's education, among other things.

Find out why term life insurance is the most affordable type of life insurance.

Lowest Cost Life Insurance Policy

What is the lowest cost life insurance policy?

The lowest cost for a life insurance policy will depend on what type of life insurance you need for how long - how many years.

Permanent life insurance provides guaranteed lifetime protection but costs 2 to 3 times more than term life insurance which provides coverage for up to 30 years.

With term life you choose a "term" which is the duration or length of time you have the life insurance protection.

The most common "term" for a term life policy is 10, 15, 20 or 30 years.

If you need life insurance for 30 years or less, then a term life policy will offer the lowest cost over that period of time compared to the premiums you would pay for a permanent life insurance policy.

Here's how you can compare low cost life insurance premiums from top-rated life insurance companies.

$500,000 Life Insurance Policy?

Can I Buy a $500,000 life insurance policy online?

Yes, there is a life insurance carrier that offers up to $500,000 of life insurance you may purchase online if you qualify.

In fact, there's no health exam required, you just answer some health questions when you request your free online life insurance quote.

You can complete the entire application process safely and securely online. Most approvals are within 24 hours.

If approved, you may start your life insurance protection within 1 or 2 days, instead of waiting 3-4 weeks or more.

And, there's no need to meet with an agent or sit through a physical examination.

Here's how to buy up to a $500,000 life insurance policy online without any delays or health exams.