Life Insurance Buyer's Guide
What is Life Insurance?
Last Updated: 11/03/2024“Life insurance pays a death benefit if you die while the policy is in effect, in exchange for premiums you pay before your death. You can use the death benefit to protect against financial hardships such as loss of your income, funeral expenses, medical or nursing care expenses, debt repayments, and child care costs after...
How much Life Insurance Coverage should I apply for and purchase?
Last Updated: 11/03/2024“How much life insurance to buy depends on the financial needs that will continue after your death. Examples include supporting your family, paying for child(ren)’s education, and paying off a mortgage. Some questions you may want to ask about your own needs include: Does anyone depend on me financially? How much of the family income...
What if I already have Life Insurance, how can I assess it?
Last Updated: 11/03/2024“It’s important to compare your current policy with any new policy you might buy. Keep in mind that you may be able to change your current policy to get benefits you want. Also, know that any changes in your health may impact your ability to get a new policy or the premium you’ll pay. Don’t...
What are the Different Types of Life Insurance Policies?
Last Updated: 11/03/2024There are many types of life insurance policies. You should choose a policy with features that fit your individual needs. Some things to consider are: TERM VS. CASH VALUE: Term insurance is intended to provide lowercost coverage for a specific period of time (“a term”). If you want coverage for a longer period of time, such...
Can I Afford the Life Insurance Premium?
Last Updated: 11/03/2024“Before you buy a life insurance policy, be sure you can pay the premiums. Can you afford the initial premium? If the premium increases later, will you still be able to afford it? The premiums for many life insurance policies are sensitive to changes in the company’s investment earnings, claims costs, and other expenses. If...
What is the Life Insurance Application Process Like?
Last Updated: 11/03/2024“You can apply for life insurance through life insurance agents, the mail, and online. In addition to basic information, such as your name, address, employer, job title, and date of birth, you’ll be asked for more personal information. Depending on the type of policy, the insurer may require you to see a doctor, answer health-related...
How Do I Choose a Beneficiary for my Life Insurance Policy?
Last Updated: 11/03/2024“A beneficiary is the person(s) or organization(s) you name to receive your life insurance policy’s death benefit. You’ll need to know the Social Security or tax identification number for all beneficiaries. Experts advise you not to name a minor child as a beneficiary. Insurance companies won’t pay a minor. Instead, consider leaving the money to...
How do I evaluate the future of my Life Insurance Policy?
Last Updated: 11/03/2024“Does your policy have a cash value? In some cash value policies, the values are low in the early years but build later on. In other policies the values build up gradually over the years. Most term policies have no cash value. Ask your insurance agent, financial advisor, or an insurance company representative for an...
I just bought my Life Insurance Policy, what do I do next?
Last Updated: 11/03/2024“After you buy life insurance… READ YOUR POLICY CAREFULLY After you carefully read your policy, you should be able to answer the following important questions: Is your personal information correct? Do premiums or policy values vary from year to year? What part of the premium or policy value isn’t guaranteed? How will the timing of...