Understanding Life Insurance Terms

As any legal document, a life insurance policy is full of terms the meaning of which is often difficult to understand. Essentially, a life insurance policy is a contract which has terms required by law and provisions that protect the insurance company.

While many policies have an extensive “definitions” section where you can look up important terms, some policies do not cover all confusing terms. Here are some insurance terms that are used throughout a policy that have special meaning and may help you get a better understanding of your contract:


Millions Recovered for Pennsylvania Life Insurance Beneficiaries by the State Insurance Department

Pennsylvania Insurance Department has concluded several multi-state investigations aimed at the business practices of the life insurance industry. As a result of the investigations, several major life insurance companies entered into settlement agreements with the state Insurance Department to pay more than $174 million in life insurance claim payments to 11,000 beneficiaries and policyowners residing in Pennsylvania.

According to the state Insurance Commissioner, the goal of the investigation was to make sure life insurance companies reform the way they do business for the benefit of beneficiaries and policyowners.

The main focus of the investigation was the life insurance industry’s selective use of the Social Security Administration’s Death Master File (DMF).


Three Life Insurance Mistakes That You Can Avoid Now

People buy life insurance for various reasons, but the most common one is income replacement. Life insurance money may be used to pay the mortgage, living expenses, college tuition, etc.

Buying a policy is not all you need to do to plan for the financial future of your loves ones in the event of your death. In other words, you cannot buy a policy, put in in your desk drawer and forget about it.

Below we will describe three most common mistakes people make about life insurance and how to avoid them now.


Things to Consider When Contemplating Divorce

We all agree that divorce is a difficult transition in our lives. Not only does it involve emotional and social disconnect, but it also comes with many financial problems. The good news is you can protect yourself from many unnecessary financial issues by planning early.

Most family law attorneys are great at navigating their clients though a divorce process and may even refer them to financial planners and money managers. If you have a life insurance policy or minor children, we also advise to consult with a life insurance attorney.


Accidental Death Claim Denied Due To Drug Exclusion

Accidental death and dismemberment policies and riders offer coverage for deaths caused by accidents. Accidents are usually defined as unforeseeable, unintended events.

People buying accidental death coverage often think that this type of insurance covers any accident as long as the person did not die of natural causes. But this is not the case.

Almost all ADD policies have several exclusions in them. Exclusions are provisions in a contract that work to exclude certain deaths from coverage and, if applied, will result in an ADD claim denial.


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