Frequently Asked Questions
Why should I have life Insurance?
Life Insurance helps pay for expenses, debts, and provide money to family members upon the passing of the insured. It can be used for final expenses, estate planning, securing finances and even provide living benefits for an insured later in life.
What is the best Life Insurance Company?
Since there are so many different types of life insurance, health conditions and different ages there is no single best life insurance company. There are companies that tend to do better per different types of coverage and conditions. We do discuss those on this site.
What is Final Expense/Burial Insurance?
Final Expense Life Insurance or Burial Insurance plans are small whole-life plans that are designed to cover burial, funeral, cremation or final costs (not long-term care). These plans are generally $50,000 or less coverage and do not require a medical exam, making them fairly easy to pick up.
What is the difference between Term & Whole Life?
Term insurance is designed to last 10,20 or 30 years before the plan ends or becomes considerably more pricey. At this point the coverage is normally canceled. Term insurance offers the most amount of coverage at the lowest possible price since it is designed for premature death. The coverage is popular with families or mortgage holders. Whole life on the other hand is designed to offer coverage for the insured’s entire lifetime with a level premium, but it is more pricey.
What is Guaranteed-Issue Life Insurance?
Guaranteed-Issue Life Insurance is whole life coverage that will be approved regardless of health. All these plans have a waiting period before coverage would pay for a natural-cause death. Normally this period is two years though it may be longer. So if an insured dies within the first two years all premium payments are returned to the beneficiary plus a bonus, normally 10%. These plans are normally more pricing than day-1 full coverage plans since they do involve more risk to the insurance company. ALSO; we have found that many seniors have this type of coverage whereas they could just as easily qualify for day-1 coverage they just did not realize it.
What is the best type of Life Insurance?
There is no best type of life insurance. The type that is best for someone depends on preference, circumstances and eligibility.
How much coverage can I get?
Normally the first $25,000 is not a problem but for larger amounts it is a factor of what is called insurable interest, or what the insurance underwriter deems appropriate. For larger coverage amounts this is normally a factor of an insured’s earnings. So if a senior earns $100,000/yr and the multiplier is 10X then normal eligibility would be $1M. Know each carrier has a different multiplier. Even low-income seniors however may get larger coverage amounts approved if it makes sense to an underwriter, such as paying off a mortgage. Beyond insurable interest the plan also needs to be affordable. Coverage amounts can range anywhere from $2,000 to $5M+.
How much coverage do I need?
Final Expense/Burial plans are normally appropriate at $50,000 or less. If trying to pay off a mortgage, providing funds for remaining family, or doing more elaborate estate planning than higher coverage amounts may be appropriate.
Why should I use an independent agent?
An independent experienced agent can provide bias-free choices to someone looking for coverage. This can result in lower pricing and better choices. Pricing via an agent would be the exact same as calling an insurance company directly but an independent agent would have more choices than simply one provider.
Can I own the coverage on my parents?
Yes it is possible to own coverage on parents but parents must consent to the application.
How much should I pay for my life insurance?
Pricing can vary based on age, health, plan type and coverage amount. Regardless of what is chosen the policy needs to be affordable so that it stays inforce and pays out.
Can I have more than one plan?
Yes and insured can have more than one plan.
What is Mortgage Protection?
Mortgage Protection is term life insurance designed to pay off a mortgage balance.
Is my current life insurance going to pay out?
Many plans that seniors have will in fact NOT pay out because they are term insurance that will expire prior to death, or are accident-only plans or have increasing premiums that become unaffordable later. This is a good reason to have the policy reviewed by an independent agent.