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Do you have to document your income when you take out a life insurance policy?

April 18th, 2010 | | Tags: , , , | 3 Comments | |

coinsandgrpahs

I want to take out a life insurance policy for about million. Will I be required by the insurance company to document my income? The money for the premium is not from personal funds.
Also, is there any restriction (either by law or by the insurance company’s own policy) on dollar limit or number of policies that one can have? A professional or at least a very knowledgeable response will be greatly appreciated. Thank you!!

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3 Responses to “Do you have to document your income when you take out a life insurance policy?”

  1. Insurance Pickle.com Says:
     April 18th, 2010 at 1:06 pm

    You’ll have to justify any amount of insurance that is in excess of ~20X your income. I just did a $1,000,000 policy for someone with a $43,000 annual income and the insurance company was only willing to issue $846,000. We were able to justify it, but NO you can’t just decide to buy any amount of insurance that YOU choose.

  2. anna_ruseva Says:
     April 18th, 2010 at 1:06 pm

    Life insurance is not about how much income you have, but about how long you supposed to have it and also about your assets and your value. Sounds not very pleasant, but we have our price/value up to the social impact we do/already did in our life and to life of others. You have to prove the importance of protection you would like to provide.

  3. mbrcatz Says:
     April 18th, 2010 at 1:06 pm

    The money has to be paid, by the policy owner. So, who owns the policy, and is the insured amount justified for the personal situation? If not, then they very well MIGHT ask for income proof.

    $3mil is at the high end of average.

    There are no restrictions on the NUMBER of policies one can have, as long as you disclose all the prior policies to each subsequent insurer. If you can afford the premiums, you can buy as many as you want, as long as the insurer is willing to give you MORE.

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