FAQ

Frequently Asked Questions About Life Insurance
Understanding life insurance can help you make informed decisions to protect your family and financial future. Below are answers to some of the most common questions people have when considering life insurance.

 
1. What is life insurance?
Life insurance is a financial contract between you and an insurance company. In exchange for monthly or annual premium payments, the insurer agrees to pay a lump sum to your beneficiaries if you pass away while the policy is active. This payout can help cover funeral costs, mortgage payments, debts, or provide financial stability for loved ones.

 
2. What are the different types of life insurance?
There are two main types:

Term Life Insurance – Covers you for a set period (e.g. 10, 20, or 30 years) and is generally more affordable.
Permanent Life Insurance – Includes Whole Life and Universal Life; lasts your entire lifetime and often builds cash value.
 
3. How much life insurance do I need?
A common rule of thumb is to have coverage equal to 10–15 times your annual income, but your exact need depends on factors like:

Your current debts
Future expenses (college, mortgage)
Number of dependents
Your long-term financial goals
 
4. Does life insurance cover all types of death?
Most policies cover death from natural causes, accidents, and illness. However, suicide within the first 1–2 years of the policy, fraud, or death during illegal activity may not be covered. Always check the policy exclusions.

 
5. Can I have more than one life insurance policy?
Yes. Many people carry multiple policies to cover different needs—such as a short-term mortgage policy and a long-term income replacement policy. Insurers will consider your total coverage amount when approving new policies.

 
6. What affects the cost of my life insurance premiums?
Premiums are based on factors like:

Age
Health history
Tobacco use
Lifestyle and occupation
Type and length of coverage
Generally, younger and healthier individuals pay lower premiums.

 
7. Do I need a medical exam to get life insurance?
Some policies, especially those with higher coverage amounts or lower premiums, require a medical exam. However, no-exam or simplified issue policies are available—though they may cost more or offer less coverage.

 
8. What happens if I stop paying premiums?
If you stop paying:

A term policy usually lapses, and coverage ends.
A whole life policy may remain active temporarily if it has enough cash value to cover payments.
Always speak with your insurer before canceling or missing payments.

 
9. Can I change my beneficiaries?
Yes, most policies let you update your beneficiaries at any time. Keep your beneficiary list current, especially after major life events like marriage, divorce, or the birth of a child.

 
10. How do I compare life insurance quotes?
Look at:

Premium cost
Term length or lifetime coverage
Policy features (convertibility, riders)
Company financial strength and reputation
Use online tools or work with an independent agent to compare multiple providers.

 
Still Have Questions?
Contact one of our licensed life insurance professionals today. We’ll walk you through the process and help you choose a plan that’s right for your budget and goals.