Q: How much life insurance Is enough?
When calculating how much life insurance your loved ones will need, you should begin by looking at what it will take to provide for the basic essentials:
•Unpaid medical bills
•Income replacement for survivors
•Final expenses such as burial costs
•Unplanned or emergency expenses
•Your mortgage balance
•Future education funds
Many families conclude that $500,000 in life insurance will accomplish these goals. Your situation will vary, of course. And we encourage you to ask about the options available to you.
Q: What types of life insurance are available to me?
Term Life Insurance
“Term” means temporary. Every year you pay a premium for that year’s coverage. There is no cash value. Your beneficiaries will collect, tax free, the face value of your policy upon your death, so long as you are current with your payments.
Whole Life Insurance
“Whole” is permanent — in effect for your lifetime. It’s best for the needs that you’ll have over a long period. In the early years of the policy, the premiums are higher than term insurance. As a result these policies develop large cash values, which can be used by the policyholder in the form of policy surrenders, or policy loans.
“Universal” is permanent, as well, but it is divided into three parts. The parts are “protection” element, “expense” element, and “cash” element. Dividing the policy into three parts allows the policy owner to make changes in the policy as needs and circumstances change. This type of insurance also carries a cash value.
Q: Is it safe to buy life insurance over the internet?
Absolutely. The internet is only a money saving communication vehicle. All payments are made by check to the insurance carrier you select.
Q: Will I have to deal with commissioned salesmen?
Absolutely not. The vast majority of the process will be completed online so you will only need to deal with an agent when you have decided on a policy.
All communications with us will be kept strictly confidential. We will not release your name or private information to any third party under any circumstance.
Q: How does the “underwriting” process work?
The underwriting process is how an insurance company determines your rate class. This generally includes the collection of medical records, an examination, and other information gathered — depending on which company you’ve applied to. When the underwriting process is completed you will receive your final offer from the insurance company and will be able to purchase your new life insurance policy.
Q: How does the “quoting” process work?
Most life insurance companies have 15 different non-tobacco underwriting classifications, which include 3 primary classifications – Preferred Plus, Preferred, and Standard. Preferred Plus rates are the lowest but most difficult to qualify for. Less than 5% of the applicants who apply for Preferred Plus actually qualify for that rate. This is why many quote services are actually a waste of your time. You need a quote service that obtains the best quote for the policy you will qualify for.
Remember, you’re going to need insurance, wouldn’t you like to get the lowest cost?