Frequently Asked Questions
Common Questions Answered for your convenience.
What is life insurance, and how does it work?
Life insurance is a contract between you and an insurance provider where, in exchange for regular premium payments, your beneficiaries receive a lump-sum payment upon your death to help cover expenses, debts, or provide financial security.
What are the different types of life insurance?
The two main types of life insurance are term life, which provides coverage for a specific period, and whole life (or permanent life insurance), which offers lifetime coverage and may include a cash value component.
How much life insurance coverage do I need?
The amount of coverage depends on your personal circumstances, including income, debts, dependents, and future financial goals like education or retirement for your family. A common recommendation is to have 10-15 times your annual income.
How are life insurance premiums determined?
Premiums are typically based on factors such as age, health, lifestyle, occupation, and the amount of coverage you choose. Smoking, pre-existing medical conditions, and high-risk activities can increase your premium.
What happens if I miss a premium payment?
If you miss a payment, many policies offer a grace period to make up the premium. If the payment isn't made during that time, the policy may lapse, and coverage will end. Some whole life policies may allow you to use accumulated cash value to cover premiums temporarily.
Can I change my life insurance policy after it starts?
Yes, depending on the policy, you may be able to adjust coverage, switch beneficiaries, or even convert a term life policy to a whole life policy. It’s best to review your options with your provider to ensure flexibility as your needs evolve.
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