Frequently Asked Questions: Life Insurance

Obtain your Answers: Frequently Asked Questions about Life Insurance.

Please note that the responses to the inquiries are provided solely for informational purposes regarding the discussed products. Individual situations may differ. In the event of any discrepancies, the official documentation takes precedence.

See below for our FAQ options to help you find what you’re looking for:

What kind of life insurance policy should I get?

The type of life insurance policy you should get depends on your specific needs and goals. Term life insurance provides coverage for a specified duration, typically ranging from 10 to 30 years, and is generally more affordable. Whole life insurance grants lifelong coverage along with an investment element. Before selecting a policy, it is crucial to evaluate your financial circumstances, forthcoming responsibilities, and long-term aspirations.

How much life insurance do I need?

Determining the appropriate amount of life insurance coverage depends on various factors, such as your income, debts, dependents, and lifestyle. A common rule of thumb is to have coverage equivalent to 5-10 times your annual income. However, it’s best to speak with a licensed insurance professional who can evaluate your unique circumstances and provide personalized recommendations.

How much does a life insurance policy cost?

The cost of a life insurance policy varies based on factors such as age, health, desired coverage amount, and type of policy. Term life insurance is generally more affordable compared to whole life insurance.

Will my life insurance provide living benefits?

Living benefits, also known as accelerated death benefits, may be included in some policies. These benefits allow you to access a portion of the death benefit if you experience a qualifying terminal illness or critical condition. You should review your policy with your advisor to see if this coverage is included or available to be added.

What life insurance benefits are guaranteed?

The guaranteed benefits of a life insurance policy typically include a tax-free death benefit paid to the beneficiaries upon the insured person’s passing. Other guaranteed benefits may include cash value accumulation in whole-life insurance policies depending on the policy. It’s essential to carefully review any policy’s terms and conditions to understand its guaranteed benefits fully.

What happens to my life insurance policy if my health changes?

Once you have obtained a life insurance policy, changes in your health typically do not impact the coverage provided by the existing policy. The insurance company has already assessed your health at the time of application when it went for underwriting. However, if you apply for additional coverage or modify your policy, your updated health condition will be considered during the underwriting process, which may affect the cost or availability of coverage.

What is the difference between term and whole life insurance?

Term life insurance provides coverage for a specified period, typically ranging from 10 to 30 years. This type of policy is designed to provide temporary protection, often chosen to cover financial responsibilities such as mortgage payments or car loans.

Whole life insurance, also known as permanent life insurance, provides lifelong coverage as long as the premiums are paid. This type of policy combines a death benefit with a savings or investment component, which allows the policyholder to accumulate cash value over time.

Can I change my beneficiary for my life insurance?

Yes! To change your beneficiary, you must contact your advisor and follow their specific process. This typically involves completing a beneficiary change form and providing the necessary documentation to support the change. The required documents may include proof of identity and relationship to the new beneficiary.  It’s important to note that the process and requirements may vary depending on your insurance company and your policy type.

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