Why would a life insurance policy need probate papers?

Generally speaking, life insurance is paid out directly from the insurer to the beneficiaries, without going through probate. This is because life insurance is considered separate from the policyholder’s estate, such that it is not subject to debt collection or taxation. However, there are certain situations in which the death benefit from a deceased individual’s[…]

When can an insurance company cancel a life insurance policy?

When taking out a life insurance policy, the policyholder aims to provide an extra layer of financial security and peace of mind for his or her loved ones. However, since insurers are incentivized to minimize risk, they will frequently look for reasons to cancel customers’ policies. This can jeopardize the policyholder’s supposed financial security and[…]