1. 3485 POINTS
    J Scott BurkePRO
    President, Newbury Inc., Evansville, Indiana
    By really work, I assume you mean does it pay a death claim when you die?

    Yes. It does.

    There are many different kinds of life insurance. It's not a lottery ticket. Term policies pay out if you die within a certain term and the coverage is in force. You can renew them but at a MUCH higher rate.

    Whole-Life costs more initially but is designed to always be in force.
    Answered on April 4, 2013
  2. 365 POINTS
    Lee Martinez
    Owner, The Sentry Agency, California
    Yes. And has worked in the United States for more than two centuries.

    It is rare for a company to deny a claim and very rare for a company to deny a claim outside the contestable period. Contestability varies by state. In California and most of the states that I am licensed in it is two years.
    Answered on April 5, 2013
  3. 11783 POINTS
    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Life insurance works so very well that it is one of the few products the federal government does not allow you to overfund without penalty. That's correct, the government changes the tax status of life insurance if too much money is placed into a policy because of the many tax advantages it provides.

    If it didn't work would the government limit it in such a way?
    Answered on April 8, 2013
  4. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    A life insurance policy is a very simple contract.  The company pays your beneficiary when you die and you pay the premiums.  There is a very small number of exceptions such as suicide, and misrepresentation.  It is a closely supervised contract in every state and it has an enviable track record of paying in full, on time.
    Answered on June 23, 2014
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