Frequently Asked Questions

Life insurance is a legally binding contract between an insurer and a policy holder that protects your family’s financial position. The insurer guarantees payment of death benefit to named beneficiaries when the insured dies. 

Life insurance guarantees  your family and dependants don’t suffer financially when you die. It can aid in funeral cost, debt, your children’s education, and your family’s standard of living when they no longer have you to support them.

  • Parents with minor children – If a parent or caregivers income could create financial hardship. Life insurance can make sure the children will have the financial resources they need until they can support themselves.
  • Parents with special-needs adult children – Children who require lifelong care and are unable to be self-sufficient can benefit greatly from life insurance. The death benefit can be used to fund a special needs trust that a fiduciary will manage for the adult child’s benefit. 
  • Elderly – Pay for “end of life” expenses, such as cost of settling an estate, or cost of funeral and burial. 
  • Adults who own property together – Death of a spouse, or partner would mean that the other could no longer afford loan payments, upkeep, and taxes on the property. 
  • Families that owe estate taxes – To provide funds to cover the taxes and keep the full value of the estate intact. 
  • Families that can’t afford funeral expenses – Life insurance can fund funeral cost of a loved one.
  • If you name a minor, it is recommended you name a trustee to receive the funds for that minor, and that trustee be properly instructed how to use the funds on the minor’s behalf, or hold the funds until the minor is of age
  • Always name a contingent, or secondary beneficiary in case you outlive your first beneficiary
  • Update the beneficiary named on your life insurance policy. Be specific about who 

There is no standard amount that fits everyone’s needs.  You must analyze your financial situation and determine how much money would be required to maintain your beneficiaries’ standard of living or meet the need for which policy you’re purchasing.

An insurance agent could give recommendation based on your personal/financial situation. 

Term Life Insurance –  If you die within the duration of the policy, your beneficiaries will be paid the death benefitTerm insurance policies do not include cash value. Your insurance company will establish your premiums, or fees you pay, for the length of the term. 

Term life insurance premiums are generally less expensive than permanent life insurance premiums when you first buy the policy. 

Permanent Life Insurance – Coverage throughout your lifetime, and gives your beneficiaries a tax-free payment after you die.Your dependants will get payment at any time while your insurance policy is in effect. Some plans also get cash value back (less than the amount you paid in premiums for the insurance costs) if you cancel your policy.  

A Permanent Life Insurance is a good choice, if you are looking for a permanent guarantee that will protect your family, cover the cost of your funeral and let you make plans for your estate. 

While they stay the same during your plan’s term, premiums increases when your plan renews at the end of a term. 

Yes it can affect your premiums. Your age is the primary factor that influences your life insurance premium rate. Life Insurance companies use a risk classification to determine your premium, such as; your age, medical history, and physical condition. 

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