Life Insurance

FInd out what type and how much Life insurance you need

What is Life Insurance

Insurance is a contract in which one party (the insurance company) agrees to indemnify (make whole) the insured party against loss, damage or liability arising from an unknown event. In life insurance, the policy protects beneficiaries (usually children, a spouse or other family members) from losses suffered after an insured’s death. It can also be used to pay off debts such as a mortgage and student loan, help replace your income or provide funds towards college tuition or business start-ups.

Types of life insurance

Term Life

A term life policy is another name for a temporary policy. It is usually set at a limited time period of 10-30 years at 5 year increments. It has no cash value but has the cheapest premium rate for the highest death benefit.

Whole Life

A whole life policy can also be called a permanent policy. It costs more than a term. It has a guaranteed death and living benefit and provides lifetime protection. It has a cash value element that increases over time at a guaranteed interest rate which could be borrowed against at any time. Other forms of this policy include universal, variable and variable universal.

Why life insurance?

Life insurance can be used for various things. It could be used as a form of survivor protection; meaning that you insure your current assets, liabilities and survivor needs, it could be used to create or conserve an estate, it is a great form of getting liquid cash with various options offered to you in terms of payout, and it is one of the safest ways to get your cash to accumulate.

The top questions people ask us

There are several factors that are taken into consideration. When your application goes through the underwriting process, there are usually five common factors they look for. These include;

Age: The cost of a policy increases each year you age. This is because as you age, the likelihood an insurer will have to pay out on your policy increases.
Gender: In general, men pay more than women for comparable policies. This is due to the average difference in life expectancy between both genders.
Hobbies: Dangerous hobbies, like skydiving, scuba diving, racing cars or mountain climbing may raise your rates.
Policy Details: Depending on the policy you choose (term or whole life), along with its respective coverage amount, the cost of your policy is affected
Health History: Risk is a big factor in life insurance. A history of medical conditions, especially serious illnesses such as heart disease or cancer, will increase your premiums. Therefore, the healthier you are, the cheaper your premium will be. It is best to buy life insurance when you are feeling your healthiest.

Yes most definitely. People who get multiple policies usually get both a term and whole life to enjoy both benefits.

There is a 30 or 31-day grace period in every policy purchased. Depending on the type of policy you have, if you are still unable to meet this period, the policy would lapse for a term policy. As for permanent or whole life, the money from your cash value will be taken out to pay the premium in order to keep the policy in force.

This is a common mistake. You will have to contact the insurer and provide the correct information. For example; you misstated your age. If you overstated it, the insurance company pays you back the extra premium. If you understate your age, you will have to either collect a reduced coverage amount or pay the difference of premium.

Life insurance has three main exclusions. These are;

Aviation: If you are a non-commercial pilot or don’t pilot flights regularly for strong experience. For example; a pilot that flies private jets instead of commercial flights.
Hazardous Occupation or Hobbies: This can be give or take depending on the insurer. Some insurers exclude this and some just increase your premium rates.
War and Military Service: With the high fatalities of war, it would not be feasible for any life insurance to support you if you are in this field. The military provides veterans with their own form of life insurance.

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