Life Insurance Leads Allentown Pennsylvania PA
Reader’s Question:
I bought a life insurance policy in Allentown Pennsylvania PA. I happen to be reading my new life insurance policy and I came across some pertinent terms in it. Can the insured and policy owner be 2 different people?
Louie
Allentown, PA
There is a difference between the insured and the policy owner, although the owner and the insured are the same person. Say for example, if A buys a policy on his own life, he is both the owner and the insured. But if B, the wife of A, buys a policy on As life, she is the owner and he is the insured. The policy owner is the warranty and he or she will be the person who will pay for the policy. The insured is a participant in the contract, but not must be a party to it.
The beneficiary will get the policy’s proceeds upon the insured’s death. The owner point out the beneficiary, but the beneficiary is not a party to the policy. The owner can alter the beneficiary unless the policy has an irrevocable beneficiary designation. With an altered beneficiary, that beneficiary must follow to any beneficiary changes. In cases where the policy owner is not the insured, insurance companies have tried to find limit policy purchases to those with an “insurable interest” in the CQV (means cestui que vit). For life insurance policies, immediate family members and business partners will usually be found to have a right to. The equity requirement usually demonstrates that the purchaser will actually suffer some kind of loss if the CQV dies.
I suggest you sit down with your local insurer’s agent in Allentown Pennsylvania PA for a more detailed explanation on your policy.
Tags: life insurance leads, life insurance options
Loading ...