Life Insurance FAQs

What do I need to know when purchasing life insurance?

Life insurance is an important way to provide for their families if the unthinkable should occur, but it can also be daunting choosing the best options for your particular situation.

 

Life insurance falls under two categories: permanent policies, which will provide money to your family no matter when you die, or term policies, which only pay if you die during a specific time. It's important to decide which one will be more practical.

 

It's also important to consider how much coverage you need, and any other extensions that you may want to include in your policy.


What should the value of life insurance I own?

This is determined by your personal needs and situations. The best possible way to find this out is to talk to your agent to find a suitable solution based on your needs.


How can I make my premium lower?

Life insurance is based on several different factors. Generally making positive life choices can help lower your life insurance premiums, as well as finding the best coverage for you specifically. When insurance companies look over your application, they'll take some of the following into consideration:

 

*Your age

*Health History

*Your current occupation

*Height and Weight

*Current Income

*Smoking or tobacco usage

*Alcohol consumption


What do Cash Value and Death Benefits mean?

The cash value of your insurance policy is the interest earning section. The cash value growth of a permanent life insurance policy is tax-deferred, which means you won't have to pay taxes on any growth of the cash value, unless of course the money is withdrawn. Loans or withdrawalscan be taken against the cash value of your policy to help with expenses such as college tuition or the down payment of your home.

 

Death benefits on your life insurance policy is simply how much your family will receive upon your death.

 

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