What is life insurance?
Life insurance is a contract between you and an insurance company. You pay premiums, and in return, the insurer provides a payout (death benefit) to your beneficiaries when you pass away.
Why do I need life insurance?
Life insurance helps provide financial security for your loved ones by covering expenses such as funeral costs, mortgage payments, debts, or future financial needs.
Who should get life insurance?
Anyone with financial dependents (e.g. spouse, children, or aging parents) or significant debts should consider life insurance.
How much life insurance do I need?
This depends on factors like your income, debts, future expenses (e.g. college tuition), and financial goals for your beneficiaries. A common rule of thumb is 10-15 times your annual income. Visit the life insurance calculator to get an idea of your insurance needs or schedule an appointment with me to complete a Financial Needs Analysis to fully assess your current financial situation and determine your insurance needs.
Can I have multiple life insurance policies?
Yes, you can have multiple life insurance policies to meet different financial goals.
What are the main types of life insurance?
Term Life Insurance - Covers a specific period of time (e.g. 5, 10, 20, 25 years) and pays out if you die within that term.
Whole Life Insurance - Provides lifelong coverage and includes a cash value component.
Endowment - Combines savings and protection. It provides a lump sum payout either when the policy matures (after a set period) or upon the policyholder’s death, whichever comes first.
Which type of life insurance is best for me?
It depends on your needs. Term life is more affordable and good for temporary needs (e.g. mortgage and replacing lost income). Whole life is better for long term needs, estate planning, or building cash value. Endowment is better for specific savings goals during one’s lifetime (e.g. college fund or retirement).
How much does life insurance cost?
The cost varies based on factors like age, gender, health, coverage amount, term length, and lifestyle habits (e.g. smoking).
How can I lower my life insurance premium?
Buy a policy when you’re young and healthy.
Maintain a healthy lifestyle (e.g. quit smoking and exercise).
Choose term life over whole life if affordability is a concern.
Can I get life insurance if I have a pre-existing medical condition?
Yes, but it may affect the cost of your insurance.
What happens if I miss a premium payment?
Most policies have a grace period of 30 days during which you can make the payment without losing coverage. After the grace period, the policy may lapse or cancel.
What is medical insurance?
Medical insurance helps cover the cost of health care expenses, including doctor visits, hospital stays, prescriptions, and preventative care.
Can insurance coverage be denied?
Yes, an insurance company can deny you coverage based on high-risk factors such as:
Severe pre-existing medical conditions, extremely high BMI or obesity.
Dangerous occupations or hobbies.
A history of excessive smoking, drug use, and alcohol consumption.
What can cause a life insurance claim to be denied?
Fraud or misrepresentation on the application.
Death from excluded activities (e.g. suicide within the 2 year contestability period).
Policy lapse due to missed payments.
What is a life insurance beneficiary?
A beneficiary is the person or entity that receives the death benefit (payout) when the insured person passes away. The policy holder designates one or more beneficiaries when purchasing a policy and can update them at any time.
How do I sign up?
Contact me to schedule an appointment to review your needs and select a plan, complete the application, make first payment, and medical requirements, if any.
What should I bring to my appointment?
Government issued ID (Passport, Voter’s Card, or Driver’s License), the payment, and an OPEN MIND.