Life insurance is something that no one likes to think about. However, if someone financially relies on you, it’s a topic you can’t avoid. Obtaining life insurance does not have to be difficult (or boring). To help you make educated decisions about how to safeguard your loved ones financially we’ve compiled a list of frequently asked questions regarding life insurance so you .

Types of Life Insurance


Term insurance provides coverage for a set period of time and normally only pays out if you die during that time. Term lengths normally range from five (5) to fifty (50) years, with the most frequent term length being twenty years. The amount and length of coverage depends on the insured age.


Permanent insurance provides lifelong protection as well as the ability to build up cash value tax-free. A permanent insurance coverage, unlike term insurance, will stay in existence as long as you continue to pay your premiums. Because these plans are structured and priced to be kept for a long time, they may not be the best sort of life insurance for you if you don’t have a long-term need for coverage.

Frequently Asked Questions

The topic of why life insurance is vital can be answered in a variety of ways. But, by far, the most crucial is providing the financial security and peace of mind of your family. If anyone relies on your income, they will most likely suffer financially if you die. That is why having life insurance is so vital. Life insurance policies come in a variety of shapes and sizes, but they all pay out cash to your loved ones when you pass away. Life insurance proceeds can be used to cover daily living expenses, mortgage or rent payments, outstanding loans, college tuition, and other necessities. Life insurance is the most effective strategy to ensure that your loved ones will be financially secure if you and your income are no longer there.

Expenses that must be paid right away
Costs of a funeral and burial
Medical expenses that aren’t covered
Rent or mortgage
Loans for automobiles
Taxes on credit card debt
Costs of settling an estate

Continual Expenses
Insurance and health care
Keeping a family business going

Expenses to Come

The amount of life insurance you need depends on who you want to financially protect and how long you want to protect them. Consider the following as a starting point:

Step 1
Calculate the immediate, ongoing, and future expenses that your family or loved ones would face if you died. This can include anything from funeral expenses to rent or mortgage payments to college tuition.

Step 2
Add up the financial assets that you and your family already have.
This could include a spouse’s salary as well as existing life insurance.

Step 3
Subtract your available funds from your projected expenses.
The difference between the two figures represents the amount of life insurance to purchase.

The cost of life insurance is determined by four factors: your age, your health, the type of policy you choose, and the amount of coverage you choose. In general, the younger and healthier you are, the less you will pay. Term life insurance is also less expensive than permanent life insurance.
However, don’t let your age or current health status deter you from purchasing life insurance. People of all ages, as well as those with high blood pressure, diabetes, or a smoking habit, can get coverage. (Just keep in mind that if you’re in poor health and/or smoke, you’ll pay extra for your policy.)

For example:

For just $15 a month, a healthy 30-year-old can purchase a $250,000 20-year level term policy.

That means that if you buy the policy and pay the $15 monthly premium on time, your loved ones will receive $250,000 if you die during those 20 years.

When a policyholder dies, the life insurance payout is usually a lump sum payment to the policyholder’s beneficiaries. You must file a claim with the insurer in order to get the life insurance payout. To process the claim, they’ll need a certified copy of the death certificate.

The time it takes to get a life insurance cheque varies. After receiving the claim, most insurers require between 30 and 60 days to respond. There may, however, be some delays. This is especially true if the policyholder passes away within two years of purchasing the coverage or if exceptional circumstances arise. The majority of life insurance policies do not cover homicide or suicide deaths. Other insurers refuse to pay out if the insured committed a crime or lied on the life insurance application.

If you have the option of receiving a life insurance payout in instalments or as an annuity, the process is slightly different.

The person, people, trust, charity, or estate who receives the payoff on your life insurance policy after you die is known as a beneficiary.

Typically, you’ll be prompted to choose between two types of beneficiaries: primary and secondary. If the primary beneficiary dies, the payout is given to the secondary beneficiary, often known as a contingent beneficiary. You can specify many beneficiaries and the percentage of the payout you wish to go to each one—for example, you could assign 50% of the payout to a spouse and 50% to an adult child. When it comes to providing for minors and naming a charity or your estate as a life insurance beneficiary, there are a few things to keep in mind.

The living benefits of a life insurance policy allow you to receive the proceeds of your policy before you die. This is usually intended for people who are facing a terminal disease or injury. Many people utilize income from living benefits to get their finances in order or to go on a particular trip with their family.

Living benefits, also known as accelerated death benefits, are often added to your life insurance policy as a rider (or endorsement).

When you apply for life insurance, your application is subjected to a procedure known as underwriting. Your insurance risk is assessed during underwriting. Your risk class determines whether or not you will be approved and how much it will cost.

Traditional underwriting and simplified underwriting are the two types of underwriting. Traditional underwriting entails filling out a formal application and, in most cases, undergoing a brief medical examination. When a life insurance application is subjected to traditional underwriting, approval can take several weeks.

Simplified underwriting, on the other hand, is typically a simple online life insurance application that does not involve a medical examination. You can frequently get life insurance coverage right away. Simply be aware that with simplified underwriting, the coverage amount may be reduced as well as more expensive.

The good news is that even if you’re rejected life insurance at first, you still have options. The first step is to ask your advisor to contact the firm that declined you to investigate if the life insurance application was filled out incorrectly. Find out why the denial was made if there was no mistake. Once you’ve figured it out, you can work with your advisor who specializes in high-risk clients and apply for a guaranteed issue insurance.

It’s a good idea to check in with your life insurance agent at least once a year, or anytime something significant happens in your life. A life insurance assessment can help you determine if your coverage is adequate to safeguard your loved ones.

When major life events occur, like as getting married, having a child, establishing a business, retiring, and so on, life insurance often needs to be updated. You should schedule a life insurance review with your life insurance agent as soon as possible if you find yourself in this situation.