Frequently Asked Questions

It depends, if you carry any debt that would be passed on to your loved ones then it would be best to get life insurance. As well as if someone financially depend  on you.

If a premium payment is missed you would have 31-day grace period. This means your policy will still be active if you were to pass away during this period. Also during this period you have 31-days to make your premium before the policy is lapsed or terminated, depending on the insurance carrier.

A miss payment after the 31-day grace period for Term life may result in a policy lapse or termination depending on the policy. A miss payment for a Whole-life policy may issue an automatic premium loan provision which means money will be taken out of the cash value account and used to pay for a miss payment. A payment that is missed within the 31-day grace period and not paid by the automatic loan provision may result in a policy lapse or termination.

Calculate all your expenses, mortgage, college tuition debt, medical bills, car note

Then add those to your ongoing bills food, shopping, subscriptions

Next take your future expenses such as children tuition and retirement funds

Yes, some policies do allow child riders which are basically just coverage that will ride along with your policy, instead of having to get your children their own personal policy.

In short, it depends on the policy and the insurance carrier. Some policies can start in two minutes and some can take two weeks, it all depends on the policy being written and the company writing it.

Given that the insurance company is in the risk business some policies pose a different risk than others, to a certain degree some policies can be written without a medical exam depending on the company. Policies that provides coverage for less than $1million might only require health questions, while another company might need a medical exam to prove that you are not a medical risk.

Any debts that you owe will be passed on to your loved ones, as well as burial cost which can cost an average of $8,500 to $15,000.

Yes, if you feel as though it is financially necessary it is fine to purchase more than one policy.

If you are seeking suicide please talk to someone so that they can help. For the first two years suicide is not covered and death benefit will not be issued to you beneficiaries. If the policy has been enforced for more than two years a death benefit will be paid out if an individual was to die of suicide. However, all the premium paid into the policy for the first 2 years plus 10% will be given to the beneficiaries.

Accident death and dismemberment insurance pays a death benefit to the insurers beneficiaries in case they die due to an accident such as a car, bus or plane accident. Also, if the insurer was dismembered due to an accident a death benefit will be paid out, if an insurer died that was not an accident or ruled an accident then a death benefit wouldn't be paid out. 

Depends on the type of policy, a Term policy carries cash value so the policy would just end. A Whole-Life policy would depend on how you want to get paid out from your "Cash Value" account.

Three options for getting paid out of your cash-value account would be ...

Cash Surrender: Take the remaining cash in your account

Reduced paid-up: Reduce your coverage and pay for the remaining premiums with a reduced death benefit

Extended Term: Purchase a term policy that matches the death benefit or what your remaining balance can afford

The average American carries about $62,000 after death, 37% is a mortgage loan, 25% is auto, 12% is a personal loan and 6% is a college loan. 

Reference

Digangi, Christine. “Americans Are Dying with an Average of $62,000 of Debt.” CBS News, CBS Interactive, 22 Mar. 2017, www.cbsnews.com/news/americans-are-dying-with-an-average-of-62k-of-debt/.