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Life insurance provides individuals and their loved ones with peace of mind while they live, and allows their estate to cover final expenses and debts after death. Life insurance should not be seen as an investment option as its premiums may not yield any return.

There are various policies available, all sharing one characteristic in common – their death benefits are paid directly to named beneficiaries upon death of an insured, funded through premium payments made over time.

Some life insurance policies also provide living benefits, such as access to part of their cash value during life for expenses like tuition costs; this will reduce both death benefits and cash surrender values payable when an insured passes away, however.

Costing of life insurance policies depends on several variables, including amount of coverage needed, death benefit and any riders (add-ons that modify terms of the policy). Since everdaylifeinsurance.com change throughout life, the amount of life insurance required might fluctuate accordingly; early in life people often purchase enough to cover funeral and burial expenses and replace lost income; later they might switch their focus toward debt payment and providing money to loved ones as needed after they die.

An individual’s risk of dying during the term of their life insurance policy depends on factors like their age and health; costs depend on this risk as it increases; hazardous occupations or hobbies, criminal records, driving histories and family medical histories may all increase accordingly.

To be approved for life insurance policies, applicants must undergo a medical exam and physical. Their medical records will then be used to establish insurability ratings and set rates charged by insurers; generally speaking, healthier and younger individuals tend to experience lower premiums.

As soon as a death occurs, beneficiaries must file a claim with their insurer with supporting documentation like a copy of the death certificate and submit it promptly for processing and payout. The faster this happens, the sooner your payout will arrive. Note that insurance companies typically allow a contestability period, usually no more than two years, during which they can review any applications filed for coverage by deceased and look for any misrepresentations that might compromise coverage – should any be found, they could potentially revoke the policy. As such, it’s vitally important that when purchasing life insurance you consult a knowledgeable financial professional. They can explain the differences among life insurance policies, calculate how much coverage is required and outline available solutions to obtaining it.