Life Insurance FAQs

How Do Know If I Need Life Insurance?
How Do I Know How Much Coverage I Need?
What’s The Difference Between Term And Permanent Life Insurance Coverage?
Can I Use Life Insurance While I’m Living?
Can I Borrow Money Against My Life Insurance Policy?
Can The Same Person Have More Than One Life Insurance Policy?
What Should I Consider In Naming My Beneficiaries?
Is A Physical Exam Always Required To Obtain Life Insurance?

Do I need Life Insurance?

Life insurance guarantees that when the time comes, everything will be taken care of. If you were to die tomorrow, would your family be able to cover your burial as well as continue to pay their own expenses?

The person that you choose to be your beneficiary will get a tax free payment that ensures that everything will be taken care of. Lack of planning can make a horrible situation even worse.

Contact your Affordable Insurance and Financial Services agent to discuss your life insurance options today.

Life Insurance FAQs

How Do I Know How Much Coverage I Need?

Insurance policies are not cookie cutter, not every person needs the same thing. It depends on whether you have family that relies on you or if you are alone and just wanting to cover your own burial.

There isn’t a set amount for replacing income, so the only wrong coverage is having none at all.

Contact your Affordable Insurance and Financial Services agent today, and they can assist you with balancing future needs with your current financial capabilities.

Life Insurance FAQs

What’s The Difference Between Term And Permanent Life Insurance Coverage?

The most cost effective type of coverage is Term Life Insurance, because it only covers you for a determined amount of time. The length of the policy varies, but as long as the policyholder dies within the time period covered, benefits will be paid. The downfall to this coverage is that the policyholder may outlive their coverage. While you are able to renew, you will be subject to higher premiums because you will be older.

Permanent Life Insurance offers lifetime protection if you continually pay your premiums.  This coverage is great for all age groups. If you buy young, you can lock in a low premium. If you are older,  you can ensure your loved ones are provided for .

In some situations, both term life and permanent coverage is desirable. Contact your Affordable Insurance and Financial Services agent today to determine which solution is best for you.

Life Insurance FAQs

Can I Use Life Insurance While I’m Living?

The key reason for purchasing life insurance is to cover your expenses after your death, but there are a lot of policies that allow the policyholder to use benefits while they are living.

Waiver of Premiums:  This is a benefit that allows you to keep your policy if you become too ill to pay your premiums, or if you become disabled.

Accelerated Death Benefits: Policyholders can exchange their death benefit for the amount of the policy’s face value If they are terminally ill.

Cash Accumulation: Some policies let you increase the value of your insurance by overpaying your regular premium. The accumulation of cash can also increase the amount of the loan if the policyholder is still living.

Portability:  When you retire or switch employment, you can take your policy with you with convenient direct billing.

Can I Borrow Money Against My Life Insurance Policy?

You cannot borrow against a Term Life Insurance Policy. However, you can borrow against a Permanent Insurance Policy. You will be required to pay back what it borrowed, plus interest. Any unpaid loan balances will be deducted from the death benefit if the policyholder dies before the loan is paid.

Life Insurance FAQs

Can The Same Person Have More Than One Life Insurance Policy?

There is no restriction on the number of policies that a person can hold. More often than not, a person will buy their own coverage as a supplement to insurance offered by their job. At the time of death, all policies will be paid out.

What Should I Consider In Naming My Beneficiaries?

This is one of the most important parts of your policy, and one of the most important choices you will make. This is the person that you will be giving the power to make decisions after your death, so it has to be someone you trust. You can choose one or multiple beneficiaries, and they can be changed at any time. You will also have to pick back up beneficiaries in the event that you outlive your primary choice.

If you have additional questions regarding the process of choosing your beneficiaries, please contact your agent, and they will be happy to assist you.

Is A Physical Exam Always Required To Obtain Life Insurance?

While most companies do require a physical exam in order to get coverage, there are some that do not have the requirement. If you want a high death benefit, examinations are almost always required.

You should be prepared to provide information on your medical history as well.

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October 22nd, 2015 by Affordable Insurance and Financial Services