Life Insurance FAQs

What is Term Life insurance?
Term Life insurance provides protection for a specified period of time – usually 10, 15, 20 or 30 years. There is no cash value associated with Term Life coverage, which is why premiums are often lower than for other types of insurance. Some policies may offer greater flexibility such as terms for return of premium and the potential to convert to Whole Life Insurance. 

What is Permanent Life insurance?
Permanent Life insurance covers the insured for his/her lifetime. The policy accrues cash value and the payout is assured at the end of the policy if the policy is kept current. Whole, Universal and Single Premium Life are all types of Permanent Life insurance.

What is Whole Life insurance?
Whole Life insurance provides protection for the entire life of the insured and provides a set level of security for loved ones. You can borrow against the policy's cash value, as it accumulates over time, to help cover unforeseen expenses. In a Whole Life Insurance policy all aspects of the policy are guaranteed. 

What is Universal Life insurance?
Universal Life insurance provides protection for the entire life of the insured and builds cash value over time while offering flexible premiums and a flexible face amount. Unlike Whole Life, there are non-guaranteed elements in a Universal Life policy.

What is Long-Term Care coverage?
Long-Term Care coverage can pay for a wide range of health and social services for individuals with chronic conditions. Coverage often includes nursing home care, home-based care and respite care. Long Term Care Insurance is a key element of a financial plan.

What is Disability Income insurance?
Disability Income insurance protects against loss of income in case of disability or extended illness. This type of insurance is considered prudent for the primary wage earner in a household.

The disability policy defines how much will be paid, when the payments will begin and when they will cease. The longer the benefit period, the higher the premium will be.

What are Policy 'Riders'?
A Policy Rider is an additional benefit under an existing insurance policy that provides additional coverage to an insurance policy. Generally, Policy Riders are sold separately from insurance policies. 

Does Term Life insurance policy have cash value?
No, Term Life insurance policies do not have a cash value or any amount you can borrow against. 

How much Life insurance do I need?
To calculate the amount of Life insurance needed consider the cost of current financial obligations, such as mortgage or rent, utility bills, food and clothing, plus future expenses such as college and retirement plans, minus the resources that your surviving family members could draw upon to meet all those obligations (spouse's income, savings and investments, other income producing assets, and any Life insurance you might already own). 

You may also want insurance for wealth accumulation or distribution purposes during your lifetime. 

Why buy Life insurance?
One of the most important reasons to purchase Life insurance is to ensure your loved ones are provided for financially. Life insurance is also useful in helping your survivors pay bills and debts after your death, as well as for funeral expenses. It may be used for wealth accumulation and distribution as part of an overall financial strategy.

What type of policy should I buy: Term or Permanent (Whole, Universal)?
Insurance needs can vary widely from person to person. The kind of coverage that's right for you depends on your personal circumstances and needs. Let one of our agents talk you through the process to determine which policy is best for you and your family. 

What if I already have insurance coverage?
It’s a good idea to review your policy periodically to make sure it still meets your overall needs. Certain life circumstances necessitate a reevaluation of your insurance coverage. These included:

• Marriage or divorce
• Becoming a parent or grandparent
• Dependents entering college
• Assuming care for elderly parents
• Receiving an inheritance
• Retirement
• Starting a business
• A new job, salary, or loss of job 

Can I purchase a policy for my children?
You may purchase a Rider to add a child or children to your policies with a variety of Term and Permanent Life policies. 

How can I save money when buying Life insurance?
Buy it now. Premiums for the same face amount of coverage increase the older you become. The more you wait, the more you risk developing a health condition that could increase your premium, or disqualify you from coverage.
If you want Permanent Life but you're on a budget, Term Life or a combination of Term and Permanent may offer lower premium payments. 

What factors generally drive insurance calculations?
Premium rates for Life insurance are typically based on factors such as:

• Age, gender, height, and weight
• Health status, including whether or not you use tobacco or nicotine
• Participation in high-risk activities or occupations

Will insurance help my beneficiary pay off my debt?
Once a claim is paid, use of the funds is at the discretion of the beneficiary you've designated. 

Do I need to have a medical exam?
Most Life insurance policies do require a para-medical exam.  The cost of this exam is paid by the insurance company. 

How long does approval take?
Depending on the type of insurance and the steps involved, it may take four to six weeks for a policy to be approved.

How soon does the coverage start?
Your Life insurance coverage will most likely begin as soon as you are approved and your first payment is received. In some cases, coverage can start when the application is taken if a premium payment is made at that time. 

Can I increase my insurance coverage?
Depending on the type of policy you have, you may be able to increase your coverage within that policy or you may purchase additional policies to increase your coverage. 

What is the contestable period?
Most policies have a 2-year contestability period, which means during the first two years after buying Life insurance, if it is found your insurance policy was issued under misrepresentation, withholding of information by the insured or the owner, or similar reasons, the insurance company can declare your insurance policy and any associated riders void. However, if fraud is determined, your insurance policy and any associated riders can be made void at any time. Additionally, if your policy is reinstated, the contestable period generally will start anew from that date of reinstatement.