Frequently Asked Questions
What factors affect my life insurance rate?
Common factors include your age, health, tobacco use, occupation, hobbies, and the amount and type of coverage you choose. Generally, younger and healthier applicants pay lower premiums, while higher coverage amounts and added riders can increase the cost.
Can I change my life insurance coverage later?
In many cases you can request a change, such as increasing or decreasing your coverage or adding riders, subject to the company’s rules and underwriting. Some term policies also allow you to convert to a permanent policy during a specific time window.
Can I have more than one life insurance policy?
Yes, many people layer coverage from multiple policies to meet different needs, such as income replacement plus a policy for final expenses. The insurance company will look at your total coverage to ensure it is reasonable for your income and financial situation.
Who can I name as my life insurance beneficiary?
You can usually name any person, organization, or trust as your beneficiary. It is important to keep this information up to date and to review it after major life events like marriage, divorce, or the birth of a child.
How do my beneficiaries file a life insurance claim?
Your beneficiaries will contact the insurance company, complete a claim form, and provide a copy of the death certificate. Once the claim is approved, the company pays the death benefit according to the payout option selected in the policy.
Is a medical exam always required for life insurance?
Not always. Some policies use “no-exam” or simplified underwriting, where they rely on your health questions and electronic records instead of a full exam. However, traditional medically underwritten policies may offer lower rates if you are in good health.
Is life insurance from my employer enough coverage?
Employer-provided life insurance is a helpful benefit, but it is often limited to a small multiple of your salary and may end if you leave the job. Many people choose an additional personal policy to make sure their coverage amount and length match their family’s long-term needs.
How does the life insurance application process work?
Typically you complete an application, answer health and lifestyle questions, and in some cases complete a medical exam. The insurance company reviews your information, assigns a risk class, and then offers you a policy with a specific premium. Once you accept the offer and make your first payment, your coverage begins.
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