Life insurance policies for Florida families.

A life insurance policy provides your beneficiaries or dependents financial support in the case of premature death so you don’t have to carry the extra financial burden that may arise from loss of income. For Boca Raton life insurance policy holders that are involved in commercial enterprises life insurance can also help fund business transactions such as buying corporate shares and buying out the ownership of the deceased.

Life Insurance is also used to fund retirement or pay off loans, college tuition or home mortgages. But before the payout is initiated there is what is called a incontestability clause. This is a period of time that your insurer has to review the case of death or medical records of the deceased. If there is a dispute over the payout the insurer can file for Interpleader with the court to determine the how the claim should be handled.

Always be sure not to miss a premium payment as the insurer will deduct that payment from the final benefit amount. If the policy is canceled, there is a three year period in which the policy can be reinstated but every premium missed must be paid at once plus interest before the insurer reinstated the full policy and benefits.

In an event where you may need to use funds from the life insurance policy you may be able to borrow against the policy at a lower rate than a traditional loan. If the loan isn’t paid off before death of the insured then the amount of the payout would reduced by the outstanding balance owed plus accrued interest. Read our section on how life insurance rates are calculated.

Here are some terms you should get familiarized with before researching life insurance policies.

Beneficiary: This is the person who will be receiving the benefits of the policy

Accelerated Death Benefit Rider: This provision is used for those that have been diagnosed with a terminal illness to receive a portion of their payout before death.

Grace Period: This gives the insured a 30 day grace period to make a premium payment

Free Look Period: For non variable life life policies this is an unconditional refund in the first two weeks after the contract is delivered.

Incontestabie Clause: This gives your insurer the right to contest a claim during the first two years of the policy.

Insurable Interest: This means that the person taking out the policy has an interest or reasonable expectation that they will benefit from the health and life of the person being insured. For instance, you cannot take a life insurance policy out on a stranger that you have no interested benefit in.

Non-Forfeiture Provision: This provision allows the insured to receive benefits or refunds on what has already been paid to the policy in the event the policy lapses. Ask you agent what the time period is for your policy or if it is initiated after a period of time during which the policy has been active. There are three options for non-forfeiture:

• Cash Surrender: This is the cash value payable in case of policy lapse.
• Extended Term: If extended term option is chosen, you can use the cash value for purchasing term insurance with a death benefit equal to that of the whole-life policy, based on the insured's age
• Reduced Paid-up Insurance: This allows you to convert the policy to a reduced amount of paid up coverage.

Retained Asset Accounts (RAA): These are financial accounts your life insurer uses to hold the beneficiaries’ proceeds until the beneficiaries withdraw the cash.

In Florida there are several types of life insurance. Lets explore the different policies and what they mean to you.

Credit Life: Credit life insurance is a type of decreasing term insurance associated with loan indebtedness. If an insured dies before the loan is repaid, the credit life policy will pay the balance of the loan.

Endowments: This allows for the payment of the face of the policy upon the death of the insured during a fixed period of years, but also the full payment face amount at the end of policy term if the insured is still living.

Whole Life: Provides financial protection for the entire life of the insured or to age 100.

Variable Whole Life: This incorporates investment vehicles, designed to enhance the cash value of a life insurance policy.

Modified Life: a whole life product that incorporates investment features, designed to enhance the cash value portion of an ordinary life policy. The product was created to take advantage of investment performances that were more favorable than those of a conventional whole life policy.

Universal Life: This is flexible permanent life insurance with low cost protection of term life insurance and investment features that increase the value of the policy.

Variable Universal Life: The features of this policy include cash value, investment options, flexible premiums and death benefits. The policy stays in effect as long as the insured is alive.

Industrial Life: These policies usually have a face value of less than $5,000 and is suitable for those who cannot afford a whole life policy. Often these are used to pay for burial or funerals.

Term Life: These policies are in effect for a certain period of time and may not be renewed. This is used by people that need a significant amount of coverage for a short period of time.

Blue Sky Insurance® of Boca Raton, Florida are experienced experts in writing Florida Life Insurance policies no matter what you situation is. Allow us to research several carriers to find you the best life premiums and benefits for you and your loved ones. Contact us today or make an appointment to visit our offices near Mizner Park in Boca Raton. Visit our online life insurance calculator or our auto, home, renters, boat, motorcycle insurance calculator to get your rates calculated out from over 70 carriers so you can see how much you can save when you trust Blue Sky.

To get a quote on the type of insurance you need you can also go to our online insurance quotes page and complete the forms and our agents will contact you within an hour to offer a free consultation and present coverages and rates to your family.