FAQ

Life insurance is a contract between an individual and an insurance company where the insurer guarantees to pay a designated beneficiary a sum of money upon the death of the insured person.

Life insurance provides financial protection to your loved ones in the event of your death. It can help cover funeral expenses, replace lost income, pay off debts, and ensure your family’s financial stability.

There are primarily two types: term life insurance and permanent life insurance. Term life provides coverage for a specific period, while permanent life insurance, such as whole life or universal life, offers coverage for the entire lifetime of the insured.

The amount of coverage you need depends on factors such as your income, debts, lifestyle, and financial goals. A general rule of thumb is to have coverage that is at least 5 to 10 times your annual income.

The cost of life insurance varies depending on factors such as age, health, coverage amount, and type of policy. Term life insurance tends to be more affordable compared to permanent life insurance.

Generally, you can only purchase life insurance for yourself or for someone for whom you have an insurable interest, such as a spouse or dependent child.

Yes, most life insurance policies offer options for adjustments, such as increasing or decreasing coverage, changing beneficiaries, or converting a term policy to a permanent one.

It depends on the type and amount of coverage you apply for. While some policies require a medical exam, there are also options available that do not require one, known as no-exam life insurance.

If you miss a premium payment, there is usually a grace period during which you can make the payment without any penalties. If the premium remains unpaid after the grace period, the policy may lapse, and coverage will terminate.

Yes, some permanent life insurance policies allow you to borrow against the cash value that accumulates within the policy. However, borrowing against the policy can reduce the death benefit and cash value.

Generally, life insurance death benefits are not taxable as income to the beneficiary. However, there may be exceptions if the policy has been sold or transferred for value.

Yes, you can typically cancel your life insurance policy at any time. However, depending on the type of policy and how long you’ve had it, there may be surrender charges or fees associated with cancellation.

If you outlive your term life insurance policy, the coverage will expire, and you will no longer have life insurance protection. However, you may have the option to renew the policy, convert it to a permanent policy, or purchase a new one.

Yes, it’s possible to have multiple life insurance policies from different insurers. This can be beneficial if you need additional coverage or want to diversify your coverage options.

With term life insurance, premiums typically increase when you renew the policy after the initial term. Permanent life insurance premiums may remain level or increase over time, depending on the type of policy and how it’s structured.

No, life insurance is not just for older individuals. In fact, younger individuals often find it more affordable to purchase coverage when they are younger and healthier.

Yes, you can still qualify for life insurance if you have pre-existing health conditions. However, the cost and availability of coverage may vary depending on the severity of the condition and other factors.

During the contestability period, which is typically the first two years of the policy, the insurer has the right to investigate and contest the validity of the policy in case of death. If the insurer finds evidence of fraud or material misrepresentation, they may deny the claim.

Yes, you can name multiple beneficiaries on your life insurance policy and specify the percentage of the death benefit each beneficiary will receive.

While savings and investments are important, life insurance provides a financial safety net that can supplement these assets and ensure your loved ones are adequately protected in the event of your death.