Frequently Asked Questions

  • Life Insurance Topics
  • Who Needs Life Insurance?

    Your need for life insurance varies with your age and responsibilities. It is a very important part of financial planning. There are several reasons to purchase life insurance. You may need to replace income that would be lost with the death of a wage earner. You may want to make sure your dependents do not incur significant debt when you die. Life insurance may allow them to keep assets versus selling them to pay outstanding bills or taxes.

    Consumers should consider the following factors when purchasing life insurance:

    • Medical expenses previous to death, burial costs and estate taxes;
    • Support while remaining family members try to secure employment; and
    • Continued monthly bills and expenses, day-care costs, college tuition and retirement.
  • Why should I have life insurance?

    It’s unfortunate but people die – some sooner than later. The important point is to do what’s right for those you love. A person gets life insurance to make sure that there is money available to maintain the financial life for those who will still be living and have a future. It’s a selfless decision in a way since you are looking out for your spouse and/or your children just like you would protect them from dangers and difficulties in life. Our advisors are here to help you gain more understanding of this subject and help you select the right life insurance policy.

    There are benefits for you from having enough insurance while you are living: You’ll feel better knowing the ones you love will be able to continue their lives without unnecessary financial disruption; if you have permanent life insurance (whole life or universal life) you can build cash value that can grow tax free. This can help give you the freedom to do other things with your money and investments because you know you have an asset your family can count on – life insurance.

  • What types of life insurance are available?

    There are two main types: Term vs. Permanent Life Insurance:

    1. Permanent life insurance is designed to last for your whole life. There are two main categories: Whole life and Universal life.
    2. Another type of life insurance is Term Life which varies by length of time from 1 year to 30 years. There is also a new type of term life policy called return of premium insurance that refunds you all premiums paid if you keep the policy for the term period.
  • How much coverage should I have?

    The easy answer is you should have enough coverage to replace the income that you would have earned had you been alive to earn it. How do you calculate that amount? There is also a very simple method of calculating the right amount of life insurance for you – take a multiple of your income that is 10 times to 15 times your annual gross income.

  • How do I choose the right company?

    Buying life insurance is a little more complex than purchasing a car or a television. When you purchase a policy you are buying a promise, a contract to pay something in the future vs. buying a commodity or something tangible. It’s very important for you to examine the company that’s backing your policy as well as considering the cost of the policy. One of the important items to consider when looking at a life insurance company is the financial strength rating of the company. Insurance company financial ratings are described further on this site.

  • Should I get insurance to pay off my mortgage if I die?

    Getting life insurance to pay off major obligations in case of death is one of the most responsible and generous acts of love you can provide. Feel free to quote inexpensive term life or return of premium life insurance for the amount of your mortgage but also strongly consider getting coverage for the entire amount that is appropriate for you and your loved ones–not just enough to pay off your mortgage.

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