AboutMichael Feinberg, ChFC Expertise I am the Executive Director of Synergy Financial Services, concentrating in
life insurance, long term care insurance, and long-term and tax-advantaged
investing. I am licensed for Life, Health, and Securities. I am always happy to answer any questions you may have on any of these
topics.
Question i have always had life insurance, but have been unclear as to how they work. If for instance i should pass, then whatever the amount the policy is for, a check for that amount will go to my beneficiary? what if i pass of natural causes at old age, is there still a check?
Also i would like to get more life insurance so if you can direct me to some legitimate companies, i would greatly appreciate it.
Answer Mike, if the life insurance policies are in force when you die, the beneficiary would need to file a death claim and provide proof of death, and they would receive a lump sum for the death benefit of the policy minus any outstanding loans against the policy if you have any. It would be a lump sum unless the beneficiary elects a different option for being paid (interest only, lifetime annuity, etc) but by far the most common choice is lump-sum. The cause of death (as long as it is not suicide) or the date/age of death (as long as the policy remains in force and as long as the death is not during the initial 2 years of the policy AND misrepresentation was committed on the application) is not relevant.
Do check the policies though because many policies (term coverages, and some universal life policies) do expire at some point in the future.
As for getting more life insurance, there are literally hundreds and hundreds of excellent insurance companies, the key to finding the right one is having an independent agent who can ask you the right questions about yourself and your needs in order to "shop around" for you.
Please let me know if I can be of any further assistance!
Sincerely,
Michael S. Feinberg, ChFC
President
Synergy Financial Services
1-866-404-8714
