I am just wondering if the insurance industry has lifted some of its limitations which used to discourage people with illness in the past. For example, I live in Reading, Pennsylvania, what would be life insurance options for me if I had a serious illness?

Amy

Reading, PA

Hello, Amy! I hope this is a fine day for you, it certainly is for me!

I may sound too biased here but I certainly believe that America has something to offer to all its citizens. And certainly insurance companies in the country (including those in Reading, Pennsylvania), have recognized that to sustain business, it has to cater to the changing needs of the consuming public.

Recent studies show that more and more Americans are contracting life-threatening illnesses over the years, perhaps owing to the change in lifestyle and eating habits. Depending on the type of illness, there are various life insurance packages now offered for customers. But this is not to say that the insurance companies in Reading, Pennsylvania have totally turned their backs on the wisdom of risk management. Still, insurers are conservative and will not take risks that are simply too high for them. For example, someone with terminal cancer may have a really hard time getting life insurance, if at all. This is because the risks are just too high for the insurance companies to take. You have to appreciate that insurance companies have a very high accountability to its policy holders and obviously they will not take on deals wherein they are sure to pay hundreds of thousands of dollars for a policy that was probably bought with just a few thousand dollars. But for diseases that have a high incident of full recovery such as prostate or breast cancer, it will not be too hard to get a life insurance that will cater to their needs.

Just to summarize, Amy, if you are suddenly stricken with a serious illness, you still have life insurance options, made particularly for people with serious illnesses.

Are we able to know if a person had a life insurance before he died? Some people don’t have relatives living near to them and when they die, will the insurance company be freed from their responsibilities to the policy holders? Are there cases like that? I’m just curious and it kills me.

Benedict

Albany, NY

Hello, Benedict! That’s true that some people may be confused of how dead people will enjoy their benefits from their policies if nobody knows where he placed his policy documents.

You may check his important documents on his working station or personal cabinets and the safety deposit box, as well. Call agencies that you suspect the person has done business with regarding life insurance, home insurance, investments, retirement planning, etc. You may also contact the family lawyers of your relative who passed away. The lawyer may be informed of the insurances of the dead person.

You may also check his emails if you have an access to the person’s accounts.
Life insurance is often purchased for a purpose of protecting the insured against loss of income. Most commonly though, policyholders commonly fail to inform the beneficiary(s) of the policy’s existence. This may result to policies go unclaimed based on long dormancy periods or lack of awareness. Insurance companies distribute what is rightfully due as stated in the policy, but the responsibility to claim benefits lies with the beneficiaries.

You may also go to the bank where the deceased had an account and check for the regular withdrawals.
If you have more information regarding the owner’s job, try to contact their company and ask.

These are just many scenarios that could possibly trigger you to inform your beneficiaries of your commitment in insurance companies. We can never tell what will happen in the next 24 hours or so, so get ready as often as you could!