Today’s families are changing and so is their need for life insurance coverage. We see more and more female breadwinners, single mothers, stay-at-home dads and people who choose to have children later in life.
Life insurance is a great income replacement tool that will protect your dependents and loved ones in the future. Having proper life insurance is essential. Below is a list of five groups that probably need life insurance coverage the most.
Having life insurance coverage is important, especially if you are the only source of income for your family. Knowing and understanding how life insurance works is essential in guarantying that your family’s claim will actually be paid after your death.
Many people do not realize that their life insurance may be of no use due to the many loopholes that can render a life insurance policy worthless.
Today more and more people choose to have a genetic test done to see what risk of health implications they might have. Genetic testing shows, for example, that a certain individual is prone to Alzheimer’s disease, lung, skin or breast cancer.
Genetic testing results are confidential and may not be disclosed without proper authorization. The situation is not very clear when it comes to disclosing health information on an application for life insurance.
Must applicants for life insurance disclose their genetic testing results?
TSGLI is Servicemembers’ Group Life Insurance Injury Protection Program.
It provides coverage for traumatic injury to servicemembers who have SGLI (Servicemembers’ Group Life Insurance). It is an injury protection program that pays benefits to servicemembers who are severely injured/have traumatic injuries.
TSGLI offers a one-time payment to an injured servicemember if the injury is a qualified scheduled loss. Depending on the injury, TSGLI payments range from $25,000 to $100,000. Additional payments are available for hospitalizations, inability to perform activities of daily living (ADL), and coma.
There are many reasons why a TSGLI claim may be denied: ineligibility for SGLI and automatic ineligibility for TSGLI, disputes about the eligibility start date, improper injury classification, incorrect description of activities of daily living, etc.
In June 2013, the U.S. Supreme Court ruled in its decision in Hillman v. Maretta that state laws that automatically revoke a former spouse as a beneficiary on a life insurance policy are trumped by federal laws governing FEGLI claims.
In Hillman, the Supreme Court stated that FEGLI claims controlled by federal laws must be paid out to the beneficiary named on a FEGLI designation form regardless of any conflicting state laws.
The state law at issue in Hillman is a Virginia statute that says that a former spouse cannot receive life insurance proceeds of a deceased ex spouse. The statute will automatically invalidate a former spouse as a beneficiary on a life insurance policy controlled by state law, but will have no effect on claims governed by federal laws. If a case implicates federal laws, any conflicting state statute will be preempted by federal laws.
Today almost all life insurance policies exclude from coverage deaths resulting from operating a private airplane. This forces many private pilots and those fling private airplanes as passengers to buy additional life insurance coverage due to the heightened risk involved in such activities.
Space tourism, however, is not on a list of exclusions in a life insurance policy. This is likely to change after the fatal crash of a test flight of a Virgin Galactic space ship on October 31, 2014.