A straight life policy is essentially a form of permanent life insurance that have fixed premiums and guarantees a death benefit upon the insured's demise. This form of life coverage can also be called as cash value insurance, whole life policy, universal life policy or fixed annuity insurance. This policy provides an investment guarantee on the amount paid out to the beneficiaries in case of the insured's death, which in some cases can be more than double the premium paid. In most cases, this form of insurance is purchased by those who are not at all financially secure.
People who have no job or income and are self-employed, or are retired are some of the main categories of people who get this type of insurance because they don't have a savings account or any kind of checking or money accounts. They are also those who do not have any pension plans or employee benefits available to them.
Key man insurance company may offer such a policy, but in order for them to be able to offer it they will need to find a suitable purchaser. In order for the insurance company to find a suitable purchaser, the buyer needs to fill out a questionnaire in order to provide information about their current financial status, their present health, whether they smoke or not, and even their credit score.
Some insurance companies will only be able to sell their policies to those people who have a good credit score. The reason why they look for applicants with good credit is because they need proof that they are financially stable in order for them to pay out premiums that they know they can afford. This is why many people who buy a straight life policy from an insurance company also end up paying high rates of interest. However, since this insurance company is confident in the applicant's capacity to pay, the interest rate is often significantly lower than a regular insurance company. Read this article for more info!
It is important for the applicant to read over the policy documents carefully before buying the insurance from the insurance company. Most insurance companies do not require a lot of information in the application forms. It is recommended that you read the entire policy very well so that you can be sure that you have understood what you are purchasing. Read more about insurance at http://www.ehow.com/how_5017067_set-up-insurance-company.html
Before buying a straight life insurance, it is important for the applicant to find out from their insurance company what the premiums will be for the policy. There are various types of policies, ranging from term life, whole, universal, and variable life, and these are just a few of the many. The more specific the policy, the higher the premium you will be required to pay.
