Frequently Asked Questions (FAQs)


Why is Life Insurance important?

For many years, life insurance has been considered as the cornerstone of any well-balanced financial plan. Without accumulated wealth, life insurance offers the insured the ability to help offset any financial burdens that might be left to the family. Such burdens can include unpaid debts, mortgages, and college expenses for young children. It can also help a spouse replace the income of the insured upon their death. Money of course can’t replace a loved one. However, replacing income and other long-term expenses could mean the difference between a family recovering from the loss and complete financial ruin.


How are families that don’t have life insurance impacted?

Without life insurance, your heirs could be faced with serious financial obligations that they cannot withstand. The average funeral today can run upwards of $10,000. Add to that unpaid debts like mortgages, car loans, student loans, and unpaid college tuition bills; a family can be devastated by the loss of the primary bread winner. As well, the value of a stay at home parent can never be substituted. However, life insurance can soften the blow of losing these non-replaceable members of your family.


When is the best time to purchase a policy?

The simple answer is before you die. The long answer is as young as possible. Life insurance premiums are based on age and health of the insured. When you purchase life insurance at a young age you can in some cases lock in a long term rate which will stay with you while you age. It also conditions you to budget this expense so that it becomes a priority in your finances. The younger and healthier you, are the less expensive it will be on your finances.

How does my health affect the cost of a policy?

Life insurance premiums as based on age and health of the insured. By being in good health, you can save money by qualifying for cheaper premiums. A person with health issues like high blood pressure or overweight or smoking, will pay much higher premiums than a person in better health.


Should children or teenagers be covered?

As a rule many believe that children should be covered at a minimum in the case of an untimely death. There are many ways to accomplish this through special riders and add-ons to adult policies for children under the age of 25. Once a child has reached adulthood and is working full time, they can assume responsibility of their own life insurance policy.


Can life insurance change my family’s financial position or condition?

YES. Having life insurance can offset expenses upon your death. Bills like unpaid mortgages, loans and college tuition can weigh heavy on a surviving spouse. By leaving a life policy to cover these expenses, your family can move on with its goals and plans. Without life insurance, your family will be forced to come up with other options which may not adequately addressed your needs and allow you to reach you family goals.


Is there more than one kind of life insurance policy?

There are two basic types of life insurance. The first is called Whole life which combines life insurance with an investment or cash value building feature. The second is called Term insurance which is usually cheaper but only last for the term purchased such as 10yr, 20yr or even as far out as 30 years.The type of policy selected should be based on the particular need of your family.