FAQs
How do I know how much life insurance I need?
The right amount of life insurance depends on your family’s financial responsibilities—now and in the future. Start by considering three categories of needs:
Immediate needs: Funeral expenses, final medical bills, legal or tax obligations
Ongoing needs: Mortgage or rent, utility bills, groceries, childcare
Future needs: College tuition, retirement income, or long-term care for dependents
Next, subtract any available financial resources—such as your spouse’s income, savings, investments, or other assets. The gap between your family’s needs and available resources is the amount of life insurance coverage you should consider.
What is an underwriter in life insurance?
An underwriter is a professional who reviews your application and medical information to assess your level of risk to the insurance company. They determine whether you’re eligible for coverage, and if so, what rate class and premium apply based on your age, health history, lifestyle, and more.
Don’t I have life insurance through my employer already?
Yes, you might. Assuming your employer offers coverage and you’ve signed up. But, the odds that your coverage is an adequate amount for your family is not likely. Most of the time, you lose it once you are no longer working for them.
What is final expense life insurance?
Final expense insurance is a type of whole life policy designed to cover the costs associated with your passing, such as:
Burial or cremation
Funeral service and memorial
Last medical bills
Small outstanding debts
It offers lifetime coverage with fixed premiums, making it a predictable and affordable solution—especially for seniors looking to ease the financial burden on loved ones.
What does “death benefit” mean in life insurance
The death benefit is the amount of money your life insurance policy pays out when you pass away—as long as the policy is active and in force. It is typically received tax-free by your beneficiaries, either as a lump sum or in another payout format of their choosing.
Can I still get life insurance if I have health issues?
Yes! While most life insurance policies do ask medical questions and may factor in your health during underwriting, there are plans available for people with serious or chronic health conditions. These options may come with higher premiums or reduced benefits, but they still provide valuable protection—and in many cases, no medical exam is required.
How young can someone be to get life insurance?
Most insurance companies will issue a policy for a baby as young as two weeks old. Parents and grandparents often choose to secure coverage early to lock in the lowest possible rates for life and guarantee insurability regardless of future health issues.
What is a death benefit?
It is a lump sum of money or payments – that gets paid to your beneficiaries if you die while your life insurance policy is in effect.
Don’t I already have life insurance through work?
You might—if your employer offers group life insurance and you’ve enrolled. However, that coverage is typically limited in amount and temporary. Most employer-provided policies end when you leave the job or retire, and they often don’t provide enough to fully protect your family.
That’s why many people choose to supplement their group coverage with a personal policy that stays with them no matter where they work.
How is a life insurance policy paid out?
In most cases, life insurance benefits are paid as a lump sum, meaning the full amount is delivered all at once to your beneficiary. This provides immediate financial support and flexibility.
Other payout options include:
Installments – spread out over time
Annuities – consistent income payments
Riders – specific terms that might offer additional benefits or payment structures
The beneficiary typically chooses how they’d like to receive the benefit at the time of the claim.
Who can I name as my beneficiary?
Your beneficiary is the person—or entity—you choose to receive the life insurance benefit. This can include:
A spouse or family member
A trusted friend
A charity
A trust or your estate
It’s important to choose someone who has a legitimate financial or emotional relationship with you. Be sure to update your beneficiary if your life circumstances change (e.g., marriage, divorce, birth of a child).
What are life insurance riders, and should I consider them?
Riders are optional features or enhancements you can add to a life insurance policy to customize your coverage. Some riders come included at no extra cost, while others may require an additional premium.
Common riders include:
Waiver of Premium – waives your premium if you become disabled
Disability Income Rider – provides a monthly income if you’re disabled
Accelerated Death Benefit – lets you access part of your benefit if diagnosed with a terminal illness
Child Term Rider – covers your children under your policy
Accidental Death Benefit – increases payout if death is due to an accident
Return of Premium (ROP) – refunds your premiums if you outlive the policy term
Riders must be selected when the policy is issued—they cannot be added later.