Frequently Asked Questions
What is Life Insurance?
In the event of your death, a life insurance policy will allow your family or loved ones the ability to pay off any debts you may have, cover funeral expenses and provide them with a sizeable lump sum. There are several types of life insurance, outlined below.
Insurance payments are determined by several factors, including age, health and the amount of coverage you are looking for. More coverage will mean higher costs, but there are a few things you can do to obtain lower premiums. These include being a non-smoker and exercising regularly. Age is one of the main factors, and starting a life insurance at a young age is a good option to keep premiums lower.
There are a few types of life insurance, including protection only, term life insurance and other. These have a set time limit for paying out, and is generally the cheapest way to provide life insurance to your family in the event of your death. The other common option is whole life insurance, which covers you for the duration of your life. Under the whole life umbrella, there are a few types. Some are tied to investments, some are a set payout.
There are a few whole life policies, like endowment or pension, which have a cash payout after a set time period. The policy holder is covered in that time period by the policy, but if they survive to a set date, a cash payout is made. This is a handy investment tool at your disposal.
Should I Get Life Insurance?
Insuring that your loved ones are taken care of in the course of unexpected events makes sense. This safety net is important to get in place as soon as possible. Under certain life insurance policies, critical illness and mortgage protection policies are wrapped in. In the event of a terminal illness or your unexpected passing, your illness expenses and mortgage are covered by the policy. Getting a free life insurance quote from the top reputable companies is worth the one minute of your time to fill out our form!
What is Critical Illness Coverage?
With critical illness coverage, the insurer is contracted to make a lump sum payment in the event that the policy holder in diagnosed with a terminal illness that is specified in the insurance policy. It's important to verify that major illnesses are covered in your policy, as things like HIV/AIDS are generally not.
Difference Between Guaranteed Premiums and Reviewable Premiums?
With a guaranteed premim, the insurer guarantees they will never increase your premium. With a reviewable, the insurer has the ability to adjust your premiums as you get older. Reviews are on a set timetable, usually every 1-5 years. Reviewable policies are generally less expensive, and we recommend them for shorter term life insurance. For the long term, guaranteed are more desirable.