An insurance policy is a legally binding contract between an insurance company and the person who buys the policy. In exchange for payment of a specified sum of money, called the “premium,” the insurance company agrees to pay for certain types of loss or damage as specified by the contract. When a loss occurs which meets all of the requirements described by the terms of an insurance policy, the loss is said to be “covered” by that policy.

There are 3 main types of life insurance: Term life, whole life and variable life. In Alaska you can buy a new simple term life insurance for $150,000.00, and “no medical exam required” for up to $250,000 to term life for $300,000, in about 15 minutes. You can get same day coverage if you answer some simple medical questions and you can apply completely on line

Jo Ann moved to Sitka, Alaska and loves living there. There are approximately 9,000 people in Sitka, Alaska. Her Question: “How Do You Find A Life Insurance policy in Sitka Alaska while you are still alive?”

If you are looking to purchase a life insurance policy: The first thing I would do is call an insurance agency, talk to an agent and request an insurance quote. Make sure you understand the difference between whole life and term life, because the death benefits may look the same but the costs will be very different. Ask your agent to see prices from different carriers and get a quick quote.

If you can’t find your life insurance policy and you are an owner or beneficiary of the life insurance policy, you need updated information, you can call the insurance company and ask them to answer some general questions for you:

• Am I insured with your company?
• Is the policy still in force?
• How much is the policy for and who is the beneficiary?

They will be happy to help. If you planning to make changes to this life insurance policy you will be requested to fill a form and give proof of your identity.

Beverly asked me recently: “Can I get life insurance in Ketchikan Alaska, my terminally ill parent?”

Yes, Beverly you can get life insurance policy on your terminally ill parent its called “graded life” policy up to $50,000. If this is not enough, you can purchase several more life insurance policies. But “graded life;” means that the company only returns premium if the insured dies before 2 years. If you parent lives beyond 2 years then the full insurance benefit is paid. It does not have an accidental death.

Find a knowledgeable insurance broker who has experience in handling tough cases. For your information if your parent has cancer you can find an affordable life insurance coverage offered to cancer patients. Just make sure you read the fine prints and ask you agents lots of questions before you sign the document.

I would get a least 3 quick quotes to make a good comparison before you decide which life insurance company you will choose.

Jason moved to Juneau Alaska, 8 months ago and called me to ask me about his life insurance cash value. “What happens to the cash value in my life insurance policy when I die?”

The cash value in a life insurance policy does not belong to the owner of the policy. Most insurance companies will use the cash value as an asset which they will use to pay the claim.

The cash value of your life insurance policy cannot be given to you if you are dead and therefore it is no longer your cash value.

But if you should relieved the insurance company has the obligation of paying the claim, after you die. But by canceling the policy or lapsing the policy, the cash value of the policy would be given to you before you die under the terms of the policy’s “non-forfeiture” clause.

Fairbanks in Alaska is approximately 760 miles from Anchorage.

If you have the life insurance policy and you are the beneficiary mentioned, then all you will need is a copy of the death certificate from your local county courthouse and turn it in to the life insurance company.

If there isn’t an agent in Fairbanks then call the Insurance company directly, you will find the contact information for the company on the policy. You probably will have to fill in a form and give proof of your identity. The company will honor the policy and make payment probably within a week weeks or a months.

Death benefits are usually not subject to federal income tax. Your insurance agent should be able to tell you if your policy benefits will be taxable or not. Give them a call to clarify your concern.

The best thing for you to do is make sure that you have your insurance policy payable to a specific beneficiary because it will pass quickly and directly to them outside of the estate and therefore will be exempt from federal and state income tax. If you leave it to your estate, there is no doubt that your beneficiary will have to pay federal, state, estate and inheritance tax.

In general, deciding how much life insurance you need means deducting the total income that would be lost upon your death from the total sum of your family’s ongoing financial needs. Consider ongoing expenses (day care, tuition, mortgage, or retirement) and immediate expenses (medical bills, burial costs, and estate taxes). Your family also may need money to pay for a move or the costs of looking for a job.