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Life Insurance FAQs

We understand that life insurance can be confusing, but at Wooten Agency we aim to simplify your experience. We’re answering your most common questions about life insurance below.

What does life insurance cover?

Life insurance can be used to cover a variety of common expenses like:

  • Co-signed debt including student loans
  • Mortgages
  • College expenses for the kids
  • Living expenses for your family
  • Stay-at-home labor expenses (cooking, cleaning, etc.)
  • Burial expenses
  • Loans from family members
  • Estate taxes that your heirs must pay for other assets

What is a beneficiary?

The beneficiary is the person or entity named as the recipient of your policy’s death benefit. It can be a family member, a person unrelated to you, or even a business or other organization. 

You choose the beneficiary on your own—you don’t need permission from the insurer or the beneficiary. You can also choose more than one beneficiary and designate how you want the death benefit to be split among them.

What does the beneficiary need to do to receive a death benefit?

Technically a beneficiary does not have to do anything to receive your policy’s death benefit. 

Your insurer will automatically disburse the death benefit if you die, but it’s still a good idea to tell any beneficiary about the policy so he or she will be prepared to take action should a problem arise. For this same reason, it’s also a good idea to provide the beneficiary with access to the contract.

The insurer will require proof of death and a copy of the contract in order to disburse the benefit.

Is the life insurance I receive through work enough?

Many employers offer life insurance through their benefits packages, but these policies alone are not usually enough to guarantee that your family will not experience a financial burden. It is important to remember that the policy is only in effect, or “good,” as long as an individual is employed with that company.

Are my insurance premiums tax-deductible?

Paid insurance premiums are not tax-deductible.

What happens if I miss a payment or am late on a monthly payment?

If you miss a premium payment, you typically have up to a 31-day grace period during which you can pay the premium with no interest charged.

Don’t see the answer you were looking for? We’re happy to talk and find the answer you need! Contact us and we will connect you with one of our knowledgeable agents.

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