Life Insurance FAQs

Question: At what age will my life insurance expire?

Answer: There is not a set age at which life insurance expires.  There are essentially two types of life insurance, they are called Term Life and Permanent Life.  Term Life expires after a set number of years that you decide up front when setting up the policy.  The term is typically 10, 15 or 20 years, but it can go longer.  Permanent Life Insurance doesn’t expire until the person who is covered passes away.  As long as you make the required payments, your insurance won’t expire unexpectedly.

Question: What kinds of Life Insurance are there?

Answer: There are two categories of Life Insurance on the market today.  Term Life Insurance and Permanent Life Insurance.  Each broad category also has sub-categories under them.

Term Life Insurance plans have one basic attribute in common, they are set to expire after a set amount of time.  Once they expire they can be renewed to reset the expiration date.  Once a person reaches an age at which they can no longer renew, they can be offered the change to convert then plan to a permanent plan.

Term Life can be broken down into two sub-categories, Level Term and Decreasing Term.  Each option has benefits that may appeal to different people depending on their situation in life.  Level Term maintains the same death benefit throughout its life.  A Decreasing Life Plan will decrease its payout amount as time goes by, making it a popular choice for those who wish to leave enough to cover decreasing financial obligations, such as a home mortgage.

Permanent Life Insurance does not expire on a certain date, it is a popular option because of its saving feature, which allows you, people, to use some of the money accumulated for other purposes.  It is divided into three major classes, Whole Life Insurance, Universal Life Insurance and Fixed Indexed Universal Life Insurance.

Question: When is term life insurance appropriate?

Answer: Generally speaking one would want Term Life Insurance when they want high benefits and low rates.  This may make an attractive option for younger people who may not have much disposable income, but want peace of mind that comes from having Life Insurance.

Question: How much life insurance should I have?

Answer: Of course this is a personal decision with many things to consider.  In the insurance industry, we find that having between 8-10 times your annual salary is sufficient to cover any bills that will need to be taken care of.  So a person who makes $50,000 per year should aim for a $400,000 to $500,000 policy.

Question: How will illness/disability affect the approval of life insurance policy?

Answer: All life insurance policies are medically underwritten, meaning that your health status may come into play as to whether you may qualify for coverage.  Those with serious medical conditions may only qualify for limited death benefits or in some cases, for none at all.  Give us a call to see what we can do for you.

Question: What can I do to make my rates lower?

Answer: The short answer is to stay in good health.  Those with good health will qualify for more coverage and lower rates.  Some specific steps one can take would be to now smoke, keep cholesterol and blood pressure within healthy levels.  Stay within healthy weight ranges for your height.  For more suggestions on what to do keep healthy, ask your doctor.